Green Industry Business

Leading Universities for Sustainable Studies

The field of sustainability has evolved from a small niche of environmentalists into a transdisciplinary field that spans from local agriculture to global business. Today, people around the globe are much more aware of the problems facing mankind and the planet as a whole. The population is estimated to grow to nine billion by 2050, an increase that will only further strain our planet's natural resources. In these universities, teachers and students are committing their careers to developing the principles and practices that will allow the human race to achieve a sustainable future.

1. The University of California at Davis

UC Davis has a long history of teaching organic farming, but it wasn't until last year that sustainable agriculture was added to the curriculum. Today, UC Davis offers a degree in Sustainable Agriculture and Food Systems that explores the social, economic and environmental aspects of food and agriculture. This course of study goes beyond the farm and the table to the wider global impact of a sustainable food supply.

2. The Center for Alternative Technology

Located in Wales, the CAT eco-center focuses on all aspects of sustainable living and also provides classes for the public and professionals. Its permanent exhibitions of alternative technologies serve as the leading tourist attractions in the area. In 2000, CAT began to teach post graduate studies, and in 2010 CAT built the Wales Institute for Sustainable Education (WISE). The WISE building currently serves as a lecture hall as well as a case study for sustainable architecture practices. Since 2008, the Center has offered a Professional Diploma in Architecture.

3. The College of the Atlantic

Students of the College of the Atlantic all share a single major: human ecology. Professors and students at College of the Atlantic approach sustainable issues through various areas of study – such as arts, sciences or business – offering a comprehensive approach to human ecology and its principles. The school also offers only a single graduate concentration, a Master's in Philosophy in human ecology.

4. Oregon Institute of Technology

In 2008, the Oregon Institute of Technology began the first four-year undergraduate degree program in renewable energy systems in the United States. This Bachelor of Science in Renewable Energy Engineering establishes the engineering principles that will promote and integrate alternative energy sources into mainstream society. The degree is taught in both Klamath Falls and Portland, Ore.

5. The Earth Institute at Columbia University

The Earth Institute is a branch of the Columbia University's NYC campus. The EI hosts a variety of majors and degree paths for environmental sciences. Students who are interested in conservation, engineering or evolutional biology can receive an education that will prepare them for careers that value the Earth.

6. The University of Pennsylvania

The University of Pennsylvania is located in Philadelphia and is often called "Penn". Like Columbia, it is an Ivy League school and is one of the oldest and renowned in the United States. The University offers a "Green MBA", which is actually a major in Environmental and Risk Management. The Green MBA teaches the "triple bottom line" principles that comprise a sustainable business model and is a good choice for those who plan to pursue careers with sustainable business initiatives.

7. Center for Sustainable Fashion at London College

This institution melds research, creativity and business to support a sustainable approach to the fashion industry. The Center for Sustainable Fashion at London College encourages social change through fashion trends. The institution challenges the status quo and encourages students to make a positive impact in an industry that can radically change the social and economic realities of our world.

8. The University of New Hampshire

BRIC Was It, Now EMIC Is the Thing

Saturday, July 12, 2014 by

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"Daring for Big Impact" was held at the Greifenstein Castle in Switzerland.

So you've probably heard of the BRIC countries as discussion of the economic growth potential of Brazil, Russia, India and China has been all the rage, especially during the recession. While still critical to world economic growth, those countries are no longer the cutting edge of investment and sustainable opportunity.

Who knows what the EMICS are? How about Ethiopia, Myanmar, Iran and Colombia? I recently was invited to attend a very special conference held at this picturesque Swiss castle nestled among idyllic gardens near the Swiss-Austrian border. "Daring for Big Impact" was a most compelling and unusual confab, featuring a carefully curated group of international experts from industry, finance, government and philanthropy. Organized by Swiss-based global impact investment and strategy firm Impact Economy, the conference looked at several significant but seemingly unrelated topics, all of which are on the cutting edge of business innovation and investing for the 21st century.

"Our challenge going forward is twofold," explained the conference's host, Christian Kruger, who serves as Chairman of Krüger & Co., and owns and maintains Greifenstein Castle in his spare time.

First, to accelerate the pace of progress so we move from pilot to mainstream, and begin achieving demonstrable results on a massive scale. Second, we need to return to holistic thinking and consider what the good life means in the 21st century, and reflect upon what each of us can do individually to ground ourselves and contribute -- so the good life is not just for the privileged few.

 

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The conference, nestled among idyllic gardens near the Swiss-Austrian border, brought together international experts to attend sessions like "The Pursuit of 21st Century Happiness."

While covering topics ranging from how to meet the crushing demand for clothing and apparel throughout the developing world in a safe and sustainable way, to climate change and its ramifications, to the relatively new science of impact investing, the conference attempted to meld these seemingly diverse topics into a central theme: if we can work together productively and strategically, we can overcome the seemingly insurmountable challenges threatening our future. Overpopulation, water scarcity, fracking, electronic waste, rising temperatures and oceans, unstable and totalitarian governments... none of these externalities seemed to deter the enthusiasm for utilizing strategic investment not only for profit but to help deal with these threats to our very existence.

This seeming juxtaposition is perhaps best illustrated by Bangladesh: the apparel industry is growing by leaps and bounds there, accounting for 20 percent of its GDP. But this emerging country is also responsible for one of the worst industrial disasters in modern history, the April 2013 collapse of a large garment factory building in Dhaka, which killed over 1,100 workers. And herein lies the problem, and the opportunity which the fourth annual iteration of "Daring for Big Impact" addressed.

"Beyond catalytic countries that can drive wider progress, there are also countries whose success in modernizing could have wider geostrategic implications," said Dr. Maximilian Martin, co-host of the conference as well as founder and CEO of Impact Economy. I had met Dr. Martin at a previous professional gathering and was taken with his keen insight and ability to analyze and translate the world's sustainability problems into business innovations.

Dr. Martin explained why he believes the EMICs to be where the action will be going forward.

Ethiopia has been the fastest growing economy in Africa with a GDP growth rate of 10.7 percent in the past decade, which made it the 12th fastest growing economy worldwide. Myanmar has undergone important industrial reforms to allow more foreign investment to flow into the country. Iran is the largest economy in the Middle East after Saudi Arabia in terms of GDP (although sanctions make it off limit for investments at the moment). And Colombia's vision to become one of the top three most competitive countries in Latin America by 2030 is supported by an expected GDP growth of 4.5 percent in 2014.

Indeed, the seventh World Urban Forum was recently held in Medellin, best known of course as world headquarters of the infamous drug cartels. However, as proof of Dr. Martin's assessment, the murder rate there has dropped by 80 percent since its peak, and was rated the number one innovative city in the world by none other than the Wall Street Journal.

A critical message imparted by Dr. Martin throughout the conference is the need to integrate sustainable practices into key industries to enable their long-term competitiveness, especially fashion, retail and electronics -- none of which, according to him, are on a sustainable track currently. This is an example of an area that business and investment leaders must work with NGOs and philanthropists to correct. The ramifications of the waste generated by these industries without proper forethought to using recyclable materials and getting those materials back into the recycling/remanufacturing supply chain will be disastrous otherwise. But if reused, they become a business opportunity.

This critical issue was looked into more closely by Carlos Criado-Perez, former CEO of British retailer Safeway and before that operations director for Walmart International. Perez's presentation made much of data points coming from Impact Economy and Ellen MacArthur Foundation research, for example that over $700 billion -- yes with a "b" -- could be saved if just half of what is sold annually by the apparel industry could be recycled for future use after its useful life, instead of ending up in landfill. Not to mention, the production of clothing is extremely water-intensive and Impact Economy estimates that up to 50 percent of the zillions of gallons required could be saved by use of sustainable manufacturing practices.

An interesting twist that separated "Daring for Big Impact" from the dozens of other "future-look" conferences was the inclusion of sessions like "The Pursuit of 21st Century Happiness" which featured Swami Nitya, spiritual guide from the UK, and Han Shan, a "guru" from Thailand, which related opportunities in global change to the personal level.

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A violinist set the evening atmosphere at the conference dinner.

One other aspect of the conference that is close to my heart was remarks by David Gelber, formerly producer for Harry Bradley of 60 Minutes fame but more recently, creator of the important documentary series Years of Living Dangerously, which is airing on Showtime (perhaps they think it offsets the soft-core porn one usually finds there?). This production is one of the best ever made at illustrating the potentially catastrophic effects of climate change. We screened an episode and a very lively discussion followed, although not surprisingly, there is not much disagreement among this group about how critical it is to proactively respond immediately if civilization as we know it is to continue.

Suffice it to say that this conference stood out from the crowd. The firm Impact Economy and Dr. Martin in particular are to be commended for having the vision to show how different topics add up to a comprehensive picture and three days of intensive and provocative thought about where we go from here and how to do it in a way that will benefit all, not just investors.

Read more from Jennifer Schwab on her Inner Green.

ASK BIG, SCARY, WORLD-CHANGING QUESTIONS

Wednesday, April 30, 2014 by

This article is written by Thomas Kolster, founder of our new collaborative partner firm, Goodvertising Agency.


Creativity is needed more than ever to bring sustainability to our world. For brands, creating sustainable success begins with a simple premise—ask huge questions.

One word your brand must own: Sustainability


In 1992 at the UN Earth Summit in Rio de Janeiro, a 12 year-old girl by the name of Severn Cullis-Suzuki delivered a speech that silenced the room with its apparent frankness, “I’m only a child, yet I know that we’re all in this together and should act as one single world towards one single goal.” Her delivery was devoid of politics and, even without uttering it aloud, asked a simple but scary question: What are you doing to help? There’s much to learn from this girl’s implicit question, especially if you are in the process of transforming your run-of-the-mill brand into a sustainable brand, your run-of-the-mill business to a sustainable business. There’s much to learn from looking at the world from a child’s curious and straightforward perspective. Ask a question—a big one—as children do without fear. Something juicy like: What difference does your company make for people or the planet? What is your relevance in a sustainable world?


NEW WORLD—NEW VALUES
For the last two years, my team and I have compiled hundreds of sustainable communication case studies from all over the world for my book, Goodvertising. One of the things we learned was how few brands have truly embraced sustainability as an entrenched organizational value. Here we are, in the midst of among the biggest business transformations in history, and most businesses are plodding along unawares. Just because consumers today aspire to drive Ferraris, does not mean our children won’t dream of owning a Tesla. Consumers are expecting more responsibility and more sustainability from brands every day. Brands need creativity more than ever to prepare themselves for the new sustainable market?


WHY ARE WE MAKING CARPETS THAT HARM THE PLANET?
A question kickstarted the journey of one of the most recognized sustainable brands: Interface. Its founder, Ray Anderson, wasn’t a born tree-hugger, but in his company a group of employees wanted to make a working group on Corporate Social Responsibility. He knew very little about CSR and decided to read a few books to prepare an inspiring talk for his team. This led him to a simple, game-changing question, “Why are we making carpets that harm the planet?” This vision has since propelled his business forward and into the top tier in its industry.


WHAT DOES YOUR BRAND OWN?
If you want your brand to make a difference, you have to approach change with creativity. Begin by questioning your business, your brand, your product offerings, your target audience and your stakeholders. The entire sustainability agenda is complicated, but ideally your brand promise or communication shouldn’t be. Your brand must have a simple reason for being that’s bigger than itself. Bodyshop owns animal rights and Method owns green cleaning. The brand that owns sustainability in its category will be tomorrow’s winner. Consider the battles which have already begun for the green throne between the powerhouse brands of the world. No longer are we seeing them saying, “Whatever you can do, I can do better.” It’s morphed into, “Whatever you can do, I can do greener.” If you want to stay relevant, you must own sustainability like Heinz owns ketchup.


DEAR BRAND, MEET YOUR BETTER HALF
Some brands have successfully integrated sustainability into the core of their brand like IBM’s Smarter Planet, which cleverly integrated IBM’s well-known ingenuity with sustainability. It should be a natural meeting between your brand and the world-bettering vision of your brand. The same applies to your campaign activities. The beer brand Corona—associated with sun, beach and fun—launched a beach cleaning effort in Spain where the collected garbage was turned into a hotel. Celebrities were then invited to spend the night. This is a simple campaign, which fits the brand and activates an easy-going beach crowd in a fun way.


WHAT’S YOUR BIG, SCARY, WORLD-CHANGING QUESTION?
Some companies are beginning to raise the bar by asking even bigger questions than that courageous and creative 12 year-old in Rio. Some of the world’s most prominent business leaders are questioning the role of publishing quarterly results, arguing that they shift focus towards short-term profits, drowning out long-term results and superseding the need to think more sustainably. We must realize that a sustainable future is a long game. We must be patient. It is a fundamental structural change. A habit of questioning the status quo and the assumptions you hold is essential to creativity and innovation and, therefore, to your business staying relevant. What is the point in asking yourself questions to which you already know the answer?
Ask big, scary, world-changing questions instead. They are timely and necessary—and fast becoming profitable, too.

The article was first published on Fast Company.

Ethical Economist Hazel Henderson Interview

Tuesday, November 19, 2013 by

I spoke with Dr. Hazel Henderson, a true icon and visionary in the world of corporate responsibility and ethical economies. Dr. Henderson is a world-renowned futurist, evolutionary economist, a worldwide syndicated columnist, as well as a consultant on sustainable development, and author of 10 books including the award-winning Ethical Markets: Growing the Green Economy. Also she was one of the co-editors of The UN: Policy and Financing Alternatives. Hazel is the founder and editor-in-chief of Ethical Markets Media (USA and Brazil) and the creator and co-executive producer of its TV series. Her editorials appear in 27 languages and in 200 newspapers around the world, and she has received many honorary doctorates and awards.

Hazel has recently released a publication entitled “Mapping the Global Transition to the Solar Age: From Economism to Earth Systems Science” from the UK’s Institute of Chartered Accountants of England and Wales (ICAEW) and Tomorrow’s Company. It will appear soon in the US from Cosimo Publications, NY.

I am in full agreement with Wisdom Network's Pamela Davis who stated “Hazel Henderson has her finger on the pulse of the economic transformation that can and must happen if we are to move forward together in prosperity in the 21st century. Her down-to-earth solutions are at once brilliant and simple enough for all of us to understand and implement.”

From the first time Hazel and I met many years ago, I have counted her as a friend. She has been a mentor to me and a consistent supporter in the growth of GreenMoney over the last 20 years. I am pleased to share this extensive interview with the still very active Dr. Henderson who recently celebrated her 80th birthday. 

CLIFF:  Will you share some of the highlights from your career with us. How are things in the business world different than you thought they would be by 2013? Are we on the way to creating a responsible economy that is not dependent on exponential growth and that works for more people?

HAZEL:   First of all, Cliff, I want to remind us all that 80 is the new 60! My physician tells me that my biological age is 60 – so I’m going with this! I work out and swim every day, eat mostly raw vegetables and fruits, local and organic from our farmers market here in St. Augustine, where I’m standing (in the accompanying photo) by our Champion Tree donated to our Ethical Markets Library during our Spring retreat in May 2013 by Terry Mock, co-founder of the Champion Tree Project International and the Sustainable Land Development Initiative. 

As to highlights, I would say my most intensive learning experience was serving in Washington, DC as a science policy wonk from 1974 until 1980 on the Technology Assessment Advisory Council for the US Congress Office of Technology Assessment (OTA), on the National Science Foundation’s RANN Committee (Research Applied to National Needs) and on the National Academy of Engineering’s Committee on Public Engineering Policy (COPEP). It was an all-male world, and I recall being asked by my fellow advisors to OTA at the first meeting in Room 100 under the dome of the Capitol if I would please go and get coffee for us! Yet, the intellectual challenge was exhilarating. I remember riding the private train under the Capitol with many members of Congress and Senators who served on Science and Technology committees; testifying before the Joint Economic Committee on the need to set up what became the Congressional Budget Office (CBO). Back then, Office of Management and Budget (OMB) would bring the President’s budget over in a truck and dump these documents at Congress, where we had no staff assigned to digest the budget and offer our own review of its priorities! Today, CBO has become almost too powerful an arbiter – scoring all legislative proposals as well as those of the President.

I then wrote my second book, The Politics of the Solar Age, published by Doubleday in 1981, downloading all I had learned about the contesting special interests, lobbying and forces shaping our national policies on energy, transportation, agriculture, trade, taxation, military and foreign policy. I saw the fight begin as the fossil fuel and nuclear power sectors pushed to preserve their subsidies, how US auto companies had also colonized congressional committees with perks, campaign donations and populated scientific panels with their intellectual mercenaries. I realized how hard it would be for the “Solar Age” economy I envisioned to emerge. Indeed, as we now know, renewable energy companies still face an uphill battle with fossil fuels and their annual global subsidies of over $500 billion, the coddling of the inherently unsustainable nuclear industry, protection of favored agribusiness, etc. I remember at one of our OTA meetings in the late 1970s, James Fletcher, who became head of NASA told us that if similar subsidies had been given to solar, wind, energy efficiency, geothermal and other technologies, we in the USA would have already been powered 100% by renewables! This set me on my future path.

A recent highlight was receiving the blessings of Verena Schumacher, widow of my late friend and mentor E. F. Schumacher, to name our over 6000-volume Henderson-Kay-Schumacher Library. This helps keep Schumacher’s flag flying in the USA. He wrote the Foreword to my first book, Creating Alternative Futures (1978), and I still teach occasionally at UK-based Schumacher College.

Click here to continue reading this interview on Green Money Journal.

 

Hazel Henderson on the design revolution from Katie Teague on Vimeo.

The Spa Industry Looks Well and Good

Wednesday, November 13, 2013 by

ispaAfter attending the 2013 International Spa Association (ISPA) annual conference, it certainly was apparent to me that all is well and good in the wellness industry.  From my observations, the $14+ billion U.S. market looks to be growing at a steady and healthy pace. “Things certainly are looking up.” Said Roberto Arjona, General Manager of the legendary Rancho La Puerta Resort and Spa. “We have not seen reservation bookings for our resort like this since before 2008 and we are now over one hundred percent capacity going into next year.”  Rancho La Puerta is not the exception. According to ISPA’s 2013 research, people visiting day spas, hotel and resort spas, and destination spas are all on the rise from 156 million in 2012 to 160 million in 2013 and spending has increased to an average of $87 per visit ; almost a two percent increase over the previous year. ISPA organizers said conference attendance was also back to pre-2008 numbers with packed educations sessions, and a busy expo floor showcasing interesting new products and services. I have been coming to this show for several years and here are some of the major observations I see trending in the wellness space:

Going deeper

It appears that spa product companies are becoming more intelligent and in touch with ingredients that promote healthy-aging rather than anti-aging. In previous years it was sometimes difficult to find truly natural and organic brands that were not greenwashing.  Labeling is a tricky thing and not many brands carry certifications such as USDA organic, Ecocert, or Natrue to verify their claims of being organic. This is because many are small boutique brands and find certification expensive. I did see a lot of companies claiming to be eco-friendly or natural and when questioned further most had intelligent responses and provided a deeper back story on sourcing and manufacturing.  

Evidence and Earth Based

I saw a lot of brands promoting benefits of natural ingredients such as seaweed, oils, stem cells and anti-oxidants. Although these ingredients have been used in spas for years if not decades, it seemed that there are more or perhaps I am just now beginning to recognize them. The science and evidence based elements of research as it relates to natural and organic based skincare regimes is more apparent and bringing about a new products that are very interesting including brands like OSEA, Dr. Hauschka, and Pino. However, with the FTC green guidelines recently released it is important that brands be aware that any eco claims that cannot be backed are subject to fines.

Bathing popularity

Kniepp claimed their sales of salt bath products have doubled in the past year due to the growing awareness of the ability to re-mineralizing the body through salt mineral bathing.  Salt products harvested from salt mines of the Himalayas or from European seas such as Kerstin Florian seemed to be more prevalent. I love salt baths and think they are a great component of a healthy regiment. But hearing that salt demand is on the rise globally is concerning. I hope the purity is maintained while the mining of this is also environmentally conscious.

Oil overflowing

It seemed like every other vendor was promoting essential oils which I think is a good thing.  For years many aromatherapists have claimed the healing benefits of essential oils.  I ran into an old friend Michelle Roark, the founder of Phia Lab, who was a professional skier, engineer, and now perfumer. She is doing energetic measurements of essential oils in kilojoules. She claims she has scientific proof of the calming or energizing qualities of oil frequencies. Here reports should be public soon and will demonstrate scientific proof of health benefits in using essential oils which is quite exciting and I am sure will be welcomed by the aroma therapy community.

Wellness Tourism on the Rise

My favorite session was on the growth and expansion of Wellness tourism presented by Suzie Ellis of SpaFinder. She spoke on “Why You Should Care About Wellness Tourism: Latest Research on the Global Wellness Tourism Market - And How Spas Can Benefit.” She covered the distinctions of medical tourism vs. wellness tourism. Susie said medial tourism focuses on reactive, symptom based medicine that people travel to another state or country to fix and heal. This includes cosmetic surgery, cancer treatments and organ transplants. Wellness tourism promotes a more proactive and less invasive approach that promotes a healthy lifestyle focusing on physical activity, diet and personal development or mind body experiences.  This has become a $439 billion dollar global market with major potential. It encompasses not only spa but alternative medicine, active lifestyles, yoga and mind body fitness which are all overlap the LOHAS market.

I was very impressed at how far the industry has not only grown but also how LOHAS values on wellness have become more integrated.  It appears that spa goers have become more conscious of how they surround themselves in spa settings and what type of ingredients they are putting on their skin and the spa companies are responding.  The recession has made brands and properties smarter in their decisions as it relates to communicating their mission to consumers and property greening as it relates to dollars and cents.  Although work still needs to be done, I look forward to what the industry has in store in the coming years.

 

St Julien Hotel & Spa offers a LOHAS experience and notable sustainable initiatives

Tuesday, October 29, 2013 by

Boulder is definitely a distinctive place with an abundance of green-minded individuals and businesses — the perfect spot for the amazing Lifestyles of Health and Sustainability (LOHAS) conference I attended for the first time this year. After shopping at the irresistible eco-conscious stores on Pearl Street, I headed over to St Julien Hotel & Spa to check out the spa. As a spa industry educator, I always feel compelled to do my on-location research — especially after writing a book on Green Spas and Salons: How to Make Your Business Truly Sustainable.

The LOHAS frame of mind is central to the spa and wellness industry as it shifts into a more natural and organic world.  I have tried at least 50 product lines over 25 years through my esthetics practice, teaching, and research.  At the Spa at St Julien I received an excellent customized facial and definitely noticed a difference in my skin with Naturopathica and Luzurn products. 

The most notable part of the spa experience was that the entire spa staff gave exceptional customer service. They were present and mindful of their guests so one did not feel like they were just a “tourist.” Spa at St Julien carries thoughtfully chosen products, including clothing, gifts, and aromatherapy candles. Skin care products include Naturopathica, Luzern, Organic Male, Zents, Farm House Fresh, Body Bliss, and Soleil Organique. The makeup lines are Jane Iredale and La Bella Donna.

Boulder’s natural environment inspires the hand-made spa treatments that incorporate indigenous ingredients of plants, seeds, stones and extracts. Fresh herbs (organic mint and rosemary) for treatments such as the Mountain Mojito Scrub are harvested from the on-site herb garden.

St Julien Hotel & Spa works closely with Boulder-based UHG Consulting to reduce the Hotel's footprint on the community. Impressively, the property has decreased energy use by 17% from 2009-2012; reduced natural gas use by 30%; and water use decreased 11% (all decreases are per occupied room). The facility has also reduced waste by 85% since 2007.

Some specific green practices include carrying local products in the gift shop, switching from paper towels to washable hand towels, composting food waste, using an Ozone laundry system, and using compostable disposable cups. St Julien Hotel & Spa also donates opened amenities, linens, and supports other charities. Sustainable events and education are part of their culture and business practices.

Check out the St Julien Spa next time you are in Boulder. To grow the LOHAS mindset, let businesses know you appreciate their eco-conscious efforts and practices. Find more on spa sustainability from Shelley Lotz at www.greenspasandsalons.com.  

 

Thinking Outside the Bottle

Thursday, July 18, 2013 by

In the fall of 2012, green cleaning company Ecover purchased Method to become the largest green cleaning company in the world. For the first time since the acquisition Adam Lowy, Co-Founder of Ecover and Tom Domen, Head of Innovation for Ecover shared details on why this occurred and what they see in the future for the cleaning industry at the LOHAS conference.

Ecover was the first green cleaning brand that was created in Belgium in 1979 to eliminate phosphate pollution. Since then they have continued to pioneer innovations and demonstrate ecological benefits while providing a quality product. They grew to be the largest green cleaning company in Europe. Method was developed 1999 because the founders were frustrated with the way business was being done and there was an opportunity to create change in cleaning. The category of cleaning was untapped in the 90's and there was a trend with LOHAS consumers with a demand for better products. They became successful by bringing together style and substance and sustainability is built into the design of the product. The product is about making sustainability desirable and grew into a 100 million dollar company in 8 years.

Green cleaning is 4% of the cleaning category. Although Ecover and Method have a dominant position they feel that this is a failure. Their goals with the merger are to radically change the at a scale that can have greater impact. They feel there is no such thing as a green consumer. “You need breadth to cater to many needs and wants. With 2 brands focusing on 1 mission we can bring green to mainstream rather than pull consumers to think green.” Says Lowry.

Adam shared that the average person does 300 loads of laundry a year. Method created a concentrate to replace large jugs commonly used. They were able to change behavior of the consumer to adopt these smaller concentrates which are now common in stores today. This is an example of bringing green to mainstream.
Ecover and Method created an innovation roadmap to go beyond what is possible today to explore solutions for tomorrow. The roadmap dreams include growing cleaning products in the garden, washing machines that incubate cleaning products. They looked at these dreams and are building a roadmap to reality.

Key areas they plan to focus on together are:
•    Eliminating fossil fuels. Ecover is using bio plastic derived from sugar cane.
•    Provide sustainable sourcing. Ensuring sources are not competing with food, and farming is environmental.
•    Natural formed products how can we grow a product instead of manufacture one. Ecover grows surfactants from yeast and other materials that are radically low in environmental impact.
•    Be resourceful in user space and teach people proper usage behaviors.
•    Create cleaning products that make your home more healthy.
•    Partnering with cleaning appliance manufacturers to improve washing processes and be more efficient.
•    Change from selling cleaning product volume to new business models.
•    Create micro location manufacturing.
•    Improve manufacturing facility waste management.
•    Ultimately be a company that works symbiotically with both society and nature.

This model is capable of evolution and behaves like an organism rather than an organization. This has an opportunity to lead to a better world but needs business to change how they play the game. Market leaders breed a bias against progress and more of a focus on position maintenance. This It is easy to focus on incremental change rather than create a business to become a force of change. The hard truth is that business committed to sustainability must be committed to uncertainty which runs against common business practice and shareholder value. Ecover and Method both believe that this is biomimicry at an organizational level and is what is needed to make the world a better place and are committed to breaking business as usual.


You can watch their full presentation here:




 

Hurricanes: Bad for Business. LOHAS Conference: Good for Business!

Tuesday, June 11, 2013 by

June 1 was the official start of hurricane season. It’s also the start of the “rainy season” here in Florida. Tropical Storm Andrea has already visited, dumping over 3 inches of rain in a couple of hours. We seem to be off to a fast start.

Causes for Concern 

According to the National Oceanic and Atmospheric Association (NOAA), 2013 is expected to be an "active or extremely active" hurricane season.

At the same time, the Earth just crossed the threshold to 400 parts per million of carbon dioxide (CO2) in the atmosphere. For those of you who don't follow climate issues, that's not good. According to the New York Times, that's the highest level in 3 million years. This level of CO2 warms the planet and provides the fuel for ever stronger hurricanes. It is no coincidence that 8 of the top 10 costliest hurricanes in U.S. history have occurred just since 2004.

For a wide-ranging view of the costs of climate change, read this study from the National Journal. It covers the many ways that climate change costs money right now.

As a Floridian, I have begun the usual preparations for hurricane season: stocking up on drinking water, non-perishable foods, batteries, First Aid kit, etc.

But as a small business person, I know that my green business is at risk from extreme weather. If the electricity goes out, so does my equipment – phones, laptop, printer. My connection to customers is lost, and my work for them is delayed.

That would make me an unreliable service provider – something I promise customers that I’ll never be.  My customers (bless them!) don’t care that the U.S. electric grid is fragile. They just want their stuff.

If the pond behind my house floods, then my home office may become a large puddle. It hasn’t happened in the 12 years we’ve been here – but it could. If I lose both power and my work location, a whole new set of costs and problems ensues. And I will lose time and money as I scramble to recover.

If the worst happens, e.g. Tampa gets hit squarely by a big hurricane, then there’s the possibility that my home and business get blown away. Which U.S. city is considered most overdue for a hurricane this year? According to NOAA, it’s Tampa. And yes, I do take that seriously.

Extreme weather means business disruption

Property damage, work delays, even death. We just saw a text book case of this with Hurricane Sandy last year. No business is immune. From the farmers who watch their drought-stricken crops wither in the field to the property insurers who have to pay out claim after claim (and sometimes don’t), no one benefits from extreme weather.

So why don’t businesses step forward and say – loudly and clearly - to their representatives, their customers and their suppliers: “Climate change is a big deal. We know it threatens our livelihoods as business people, and we know it’s a threat to you, our customers. Here’s what we plan to do about it, and here’s what you, our customers, can do to help.”

On the one hand, it’s a naïve question. On the other, it’s a simple, straight-forward one. Either way, it requires an answer.

I wonder at the continued folly of many big corporations around climate change. According to Ernest Moniz, formerly of MIT and newly-confirmed Secretary of the Energy Department: "We will need not only technology innovation and policy innovation to achieve a low-carbon future — but also business model innovation."

That’s a diplomatic way of saying, “The old “grow-at-all-costs, put-profits-first” model will be the death of us. We need a different approach.” The chances of that happening voluntarily – especially in the hide-bound energy sector - are slim.

And the energy industry is not alone. Professor Michael Toffel of Harvard Business School writes, "Corporate Sustainability is Not Sustainable." In short, he describes how the actions of even the best intentioned corporations to date are not up to the scale of the problem.

So, what to do?

One postitive step - go to the LOHAS conference next week!

And also:

  • Get educated about climate change and share what you know. You don't have to be a scientist to understand the basics of what is happening. One source of information I rely on is Climate Progress.
  • Lower your carbon foot print. LOHAS is a great source of information, but so are sites like Practically Green and Green America.
  • Vote with your dollars. Switch to greener products and services. Check out Vine.com - Amazon's market place for greener and more sustainable items. And explore the LOHAS Hub. Truly green businesses that transact with other green businesses move the economy in the direction it needs to go.

Is this a shameless plug for the LOHAS conference? Yes. (And no, Ted Ning didn’t put me up to this.) But attend, connect, and find at least one new way to support a more sustainable economy. That’s the value of the LOHAS conference: learn, do, and – oh yes! – enjoy!

 

Alison Lueders is the Founder and Principal oGreat Green Editing. She provides writing and editing services to green businesses and social enterprises that value high-quality content. She is a graduate of Harvard College and received her MBA from MIT. She earned her Bronze seal from Green America in April 2013 and Platinum-level recognition from the Green Business Bureau in 2012. 

Band Cloud Cult Showers World with Love

Thursday, May 9, 2013 by

I'm not necessarily a follower. But  I'm proud to announce that I've joined a cult. Cloud Cult, the indie band, originally from Minneapolis, that now lives on an organic, geothermal- powered Wisconsin farm.

At First Avenue a few nights ago, the venue where rock star Prince first came onto the scene—Cloud Cult played to two sold-out shows and put on a show that was pure magic.

Their new album Love, is beautiful, insightful, mystical, wise and takes listeners on an inner odyssey that is guaranteed to rock your world.

The band's label, Earthology, is committed to greening the music industry, offsets carbon from tours and developed the first 100% post-consumer recycled CD packaging in the U.S. 

As a leader in the LOHAS (Lifestyles of Health & Sustainability) space, and president of firefly180 marketing, I know the power of music as a vehicle for change.

Working with green artists that include John Denver, Kenny Loggins, Jack Johnson and the Dave Matthews Band,  I know that music speaks to the soul and touches the heart in ways that words alone can't.  Music and lyrics are the ultimate integrated marketing campaign. Songs become doors that open the mind to action. And for environmental artists, music can be a platform that becomes a springboard for change.

Cloud Cult doesn't just write and perform music. They literally shower the world with love.  Just like all of us in  conscious businesses. Although not all of us can sing and compose music, our voices are heard just the same.

Lisa Proctor is the president and creative director of firefly180 marketing—a Minneapolis-based branding and advertising agency that specializes in LOHAS marketing, wellness marketing, green marketing and renewable energy marketing.

 

Green Spas And Salons: How To Make Your Business Truly Sustainable

Wednesday, April 24, 2013 by

Green Spas And Salons: How To Make Your Business Truly Sustainable, a new book for the Spa/Salon/Hospitality Industry by Shelley Lotz, helps owners and managers develop smart, sustainable practices for long-term business success.

This unique guidebook summarizes business practices, sustainability principles, and green building  all in one. The book sifts through the “green hype” to focus on best practices. This guidebook goes beyond the spa industry and most  of the principles are applicable to any business or lifestyle. 

  Planning guides with personalized action plans, how-to steps, and worksheets are included. Tools are given for evaluating services, products, supplies, operations, and building elements. Ideas for staff engagement, client needs, and marketing are incorporated, along with the science and the economics of sustainability. Guidelines for purchasing, water and energy conservation, waste reduction, and indoor environmental quality are all covered. 

  The book is described by Mary Bemis (Founder of Insider's Guide to Spas, and Founding Editor of  Organic Spa Magazine) as “an invaluable resource for spa and salon owners.”  Kristi Konieczny,   Founder of The Spa Buzz, says “The most powerful and practical resource for sustainability of spa and salon operations I have ever seen.”

Visit www.greenspasandsalons.com  for more information.

Inspiring spa case studies include: Agave Spa, Aji Spa and Salon, Atlanta School of Massage, Be Cherished Salon and Day Spa, Complexions Spa, Crystal Spa, Elaia Spa, Glen Ivy Hot Springs, Natural Body Spa and Shop, Naturopathica, Osmosis Day Spa Sanctuary, Spa Anjali, Spa at Club Northwest, Spa Moana, Sundara Inn and Spa, The New Well, Vdara Spa and Salon, and Waterstone Spa.

Shelley Lotz has over 25 years of experience in the spa/wellness/beauty industry as an esthetician, educator, and business owner. She is a major contributing author of Milady’s Standard Esthetics Fundamentals, a core textbook for esthetician students. She started an institute of aesthetics and is also a Certified Sustainable Building Advisor. Contact her at lotz.shelley@gmail.com.

The book will be featured at LOHAS and Ted Ning is one of the book contributors, as the LOHAS philosophy is a key part of the green business movement. 

 

LOHAS: You Had Me at Hello

Monday, April 22, 2013 by

This is my first blog post for LOHAS and I’m happy to be here. I’ve been reading LOHAS newsletters for over a year now. I nodded in agreement so often that I jumped at the chance to join the conversation.

A focus on green business

While LOHAS covers many topics, my posts will focus mostly on green business. I am an MBA and spent many years in corporate America before leaving to start my own green business in 2011.

I believe that business can and should play a key role in the transition to a greener economy. Traditional big businesses have enormous financial and people resources at their disposal.  When they decide to move in a particular direction, they can do so with an impact that a small business can’t match.

Unfortunately, in my experience, big business's singular focus on quarterly profits conflicts with the vision, courage and patience necessary to reinvent themselves as truly sustainable enterprises.

So while I celebrate all businesses that move in a greener direction, I see smaller (and privately owned) businesses as leading the way for now. They have a nimbleness and a willingness to embrace change that larger businesses often lack. I suspect that until government mandates the changes necessary to move sustainable practices from optional to mandatory, certain business players will remain in the old, unsustainable model. In the meantime the rest of us need to charge ahead.

The sustainable business view from here

I also want to share the view from my current home in Tampa, Florida. Despite its moniker as the “Sunshine State,” Florida lags on policies ranging from renewable power standards to mass transit. One reason I read LOHAS is to keep up with developments in places like California and Colorado that are – ahem – ahead of Florida in this regard.

We have astonishingly beautiful natural resources in Florida. (That's a roseate spoonbill in the picture above.) From the Everglades to the Gulf beaches, there is “natural capital” here that needs to be protected. Not just because it’s pretty – although you’d think a state whose largest industry is tourism would understand its value. But because when the natural environment is healthy, so are the people – physically and economically.

Here are 3 challenges I’ve encountered as a green business owner. Which ones resonate with you?

Lack of awareness – when I say “green”, many people think I am referring to the color, or that I am describing myself as a newbie. (I’m not.) The topic of greener business is generally not on people’s radar here.

The schools educate kids about sustainability issues better than the mainstream media does for adults. Case in point: I asked a local publisher several years ago why his Florida business-focused magazine did not have a regular feature on green business. He replied that his readers (of whom I am one) weren’t interested in that. I find that stories about green business, green jobs and green learning programs are generally under-reported.

Fragmentation of effort – there is tremendous fragmentation and lack of coordination across green businesses, nonprofits and government agencies when it comes to efforts to go green. When I go to EcoFests, green business networking events and climate change conferences,  I am struck at how many well-intentioned people are struggling to do basically the same things. Imagine if all this effort and resource were consolidated and coordinated in an organized fashion. The whole impact could be greater than the sum of the parts.

Under-funding – too many businesses still see sustainable business practices as optional or a PR move. It’s long past time to invest in something more than recycling bins. To me, green business is a money-making venture for everyone.  Did you know that green jobs are the fastest growing sector in the economy?

The Good News

There is a lot going on under the radar. Last week I attended the 5th Annual Sustainable Business Awards at the University of Tampa. 13 winners collected awards and applause for their “triple bottom line” approach to business. Their businesses ranged from LED lighting to community-supported agricultural farms to recycled air filters. With one or two exceptions, you probably wouldn’t recognize any of their names. But these are the business that will shape the future.

Opportunities in green business are limitless. As a business person, I see the need to reinvent our economy in a more sustainable fashion not just as a daunting challenge, but as a huge opportunity.  To make a good living while helping to save the planet  - what’s not to love?

What do YOU want to hear about?

So that’s LOHAS blog post #1 for me. Let me know your thoughts and tell me what you’d like to hear about in future posts.

About the Author

Alison Lueders is the Founder and Principal oGreat Green Editing. She provides writing and editing services to green businesses and social enterprises that value high-quality content. She ensures that their content and communications – their business face to the world – are correct, clear and compelling. She is a graduate of Harvard College and received her MBA from MIT. She earned her Bronze seal from Green America in April 2013 and Platinum-level recognition from the Green Business Bureau in 2012.

She can be reached at info@greatgreenediting.com and at 813-968-1292.

Green Jobs: Resources for Careers in Natural, Organic and Sustainable Products

Monday, April 22, 2013 by

Here at Compass Natural Marketing, a lot of folks ask us about resources for finding jobs and career opportunities in the $300 billion LOHAS market, i.e., the “Lifestyles of Health and Sustainability” market for natural, organic, eco-friendly, and socially and environmentally responsible products and services.

There are a lot of great companies and NGOs in the LOHAS market, from organic food to renewable energy and from yoga to green building. In fact, with significant growth in demand for natural, organic and sustainable products, according to the Organic Trade Association, the organic food industry is creating jobs at a much higher rate than the conventional food industry.

Here are some good resources below for finding jobs in the natural and organic foods and sustainable products industry, and for social and environmental mission based organizations.

Of course, if you identify companies you’d like to work for, check their websites. Often, the larger companies, such as Whole Foods Market, UNFI, Pacific Natural Foods, Earthbound Farm, and other brand leaders will have job postings on their own websites. Do some research of your favorite brands.

We welcome your comments and suggestions to add to the list.

Green Job Resources

Green Dream Jobs. You can search by level and region. Awesome resource presented by our friends at SustainableBusiness.com.
www.sustainablebusiness.com/jobs/

Here’s a great resource for sales, marketing, management and executive level jobs in the Denver/Boulder region, created by our friend and colleague Luke Vernon.
www.lukescircle.com

Also, GreenBiz has a great sustainable jobs board.
http://jobs.greenbiz.com

TreeHugger has green job listings.
http://jobs.treehugger.com

Sustainable Industries posts green jobs across the country.
http://sustainableindustries.com/jobs

Just Means job listings have a social mission and NGO focus.
http://www.justmeans.com/alljobs

Natural and Organic Industry Resources. A good compendium of industry resources.
http://naturalindustryjobs.com/natural-organic-foods.asp

Naturally Boulder is another resource for job listings in the Boulder/Denver region.
http://www.naturallyboulderproducts.com/news/#jobs

World Wide Opportunities on Organic Farms. Wanting a Peace Corps-like volunteer experience, but on an organic farm somewhere around the world where you can learn about organic agriculture? Feeling young and adventurous? Check out WWOOF.
http://www.wwoof.org

Green Career Guide job thread.
http://greencareerguide.jobthread.com

California Certified Organic Farmers, an excellent organization for organic producers, posts job listings.
http://www.ccof.org/classifieds.php#emp

ReWork:  Founded in 2011 by alumni of the Unreasonable Institute in Boulder, ReWork helps people find careers in values-based, socially responsible and sustainable businesses.
http://rework.jobs/talent

Hope this helps get you started. Happy green job hunting!

________________________________________________

Steven Hoffman is Managing Director of Compass Natural LLC, a full service marketing communications, public relations and business development agency serving natural, organic and sustainable business. Hoffman is Co-founder of the LOHAS Forum annual market trends conference, former Editorial Director of New Hope Natural Media’s natural and organic products trade publication division, and former Program Director of Natural Products Expo East and West. A former Peace Corps volunteer and agricultural extension agent, Hoffman holds a M.S. in Agriculture from Penn State University. Contact steve@compassnatural.com.

Shoppers' shifting values will lead to more green, fair, quality purchases

Wednesday, April 3, 2013 by

The sharing trend that became popular with Zipcar is likely to expand to other industries such as tools and baby gear as consumers readjust their spending patterns to focus less on conspicuous consumption and more on making thoughtful choices with their money, says one leading social forecaster.

In the improving but not yet booming economy of 2013, Patricia Aburdene, author of the New York Times bestseller "Megatrends 2000" and most recently "Conscious Money" (Atria Publishing; $16 paperback), predicts priorities and values will play a bigger role in shaping spending decisions.

"Key concepts like practical, quality, meaningful, simplicity, chemical-free, local and sustainable will be what encourages consumers to open their wallets," said Ms. Aburdene, who lives in Boulder, Colo.

For the most part, people are still feeling some financial stress brought on by the Great Recession that started in December 2007, which she says is fueling the popularity of sharing trends such as Zipcar, which allows members of its sharing network to reserve cars for personal use by the hour or the day.

The car-sharing niche created by Zipcar in January 2000 is already starting to see more competitors. Hertz, Enterprise and UHaul have come up with their own versions of short-term car rentals. Regional competitors such as City CarShare in San Francisco, Mint in New York and Boston; and I-GO in Chicago also are becoming bigger players.

"Car sharing is taking off because people are realizing how darn much it costs to own a car," Ms. Aburdene said, adding that car sharing is more of an urban phenomenon.

Other new societal demands and behavior that she expects will gain more traction are transparency, fair trade and third-party verification of products.

Just as the "Good Housekeeping Seal of Approval" helped consumers in past decades put their trust in a product, Ms. Aburdene says more shoppers will be drawn to seals of approval from groups like Greenpeace and the Rain Forest Alliance. "Those product seals will let consumers know the company is socially responsible and the consumer is making a difference in the world when they buy the product," she said.

Fair trade is another growing global movement that will affect spending, according to Ms. Aburdene. Fair trade products -- ranging from coffee to chocolate to wine -- sometimes cost more so that farmers are paid fairly for their efforts.

Gerald Celente, publisher of The Trends Journal in Kingston, N.Y., said he agrees with Ms. Aburdene's analysis of 2013 trends in general. But he says the majority of Americans are on a downward economic path and may not have the luxury of making socially conscious spending choices, especially when there are cheaper alternatives.

"While they can have the best intentions, it's a stomach issue and a pocketbook issue. People are falling out of the middle class in huge numbers," said Mr. Celente, who forecast the popularity of gourmet coffee years before Starbucks became a household name and bottled water decades before Coke and Pepsi got into the business.

Mr. Celente, author of "Trend Tracking" and "Trends 2000" (Warner Books), said Ms. Aburdene's trend predictions for the new year refer mainly to a small segment of people in an affluent society, but do not apply to the masses of Americans struggling to make ends meet.

However, Ms. Aburdene has a pretty good track record of past predictions.

In "Megatrends 2000," which was published in 1990, when many economists warned of tough economic times ahead, she and co-author John Naisbitt instead predicted a booming global economy during the 1990s. The book also predicted the Pacific Rim would come to prominence in the 1990s, and it certainly did, with China and the economies of the Four Tigers (Hong Kong, South Korea, Singapore and Taiwan) expanding at explosive rates.

"When you look at the trends for 2013, the social trends have a very strong economic flavor to them," Ms. Aburdene said. "The way consumers can begin being conscious about money is to start by reflecting on their values and priorities so they spend money in ways that feel right to them."


First Published February 26, 2013 1:15 am by Tim Grant: tgrant@post-gazette.com

Conscious Money & Conscious Capitalism

Friday, January 25, 2013 by

Two of today’s greatest megatrends, Conscious Money and Conscious Capitalism, are cut from the same financial cloth. And each of these innovative strategies flies in the face of conventional money thinking—which insists that human values should play no role whatsoever in financial decisions. That view is clearly incorrect. Values powerfully shape our choices (even if we’re unaware of it) and our behavior. Our choices and actions write the story of our lives—and our money lives. I’d go even further: positive values support us make better financial choices. Why? Because values engage the heart in the way that sound financial practices honor the head. When heart and head are in sync, our emotions are steady, our mind is settled, and our direction is clear—all of which enhance our ability to make good economic decisions.

Today, conscious finance attracts more followers daily as business leaders and “ordinary” people alike seek new monetary models that integrate values into finance. The $290 billion LOHAS market of course, is well known to many, but consider also the $3.74 trillion Sustainable Responsible Investing (SRI) industry, which has expanded 22 percent since 2010. Each of these robust sector, which have continued to thrive despite a weak economic recovery, embody Conscious Money, illustrating how compatible values and money really are. So much for conventional thinking. In fact, traditional financial and consumer brands avidly pursue the LOHAS and SRI markets. 
Conscious Capitalism is a new breed of free enterprise that honors people, purpose, and the planet. Embraced by visionary CEOs, in the US and globally, Conscious Capitalism differs from traditional capitalism because it endorses the “stakeholder model” of business which considers the interests of all parties that contribute to corporate success—customers, employees, investors, suppliers, communities, and the planet at large. Traditional capitalist theory by contrast tends to place investors first. For example, the late Milton Friedman, a Nobel laureate in economics, famously stated: “The social responsibility of business is to increase profit.” Conscious Capitalists are typically highly committed to growing profit, as well, but go they about it in a different way: by embracing a purpose above and beyond profit, such as promoting personal health or global sustainability. Human values like trust, justice, or transparency also play an important role in policy and behavior of conscious companies.  
Conscious Money, by contrast, is an approach to personal finance in which human values, inner wisdom, and higher consciousness guide individual financial choices, while people also observe sound monetary principles. The idea behind Conscious Money is simple: it’s about creating a positive, life-affirming relationship with money and a recognition that, when greater awareness (or consciousness) directs money choices, it can make a difference for one’s self, for others and for the planet at large. 
Figuratively speaking, your money becomes “conscious” when you infuse your cash, savings, expenditures, income investments, and philanthropic contributions with values, awareness, and positive intentions. 
Conscious Money and Conscious Capitalism are together building an unparalleled platform for meaningful economic co-creation. Because at the heart of every financial transaction lies the power of collaborative conscious choice. Conscious shoppers wield an enormous force for good in the economy. Conscious Capitalists, in turn, are more likely to invest in green innovation knowing that a growing market for green products exists. Each time individuals and businesses interact in a conscious exchange, the inner world of awareness and values tempers the marketplace of humanity, transforming our economic reality. With each positive life-affirming transaction, we jointly create a new and conscious economy that will sustain the future of human evolution and transformation.
 
Patricia Aburdene is one of the world’s leading social forecasters and an internationally-renown speaker. She co-authored the number one New York Times bestseller Megatrends 2000. Her book Megatrends 2010: The Rise of Conscious Capitalism launched a business revolution. Patricia’s new book, Conscious Money: Living, Creating, and Investing with Your Values for A Sustainable New Prosperity, published in 2012, is a finalist is the Green category for the “Books for a Better Life Award.” Read Chapter one of Conscious Money. Patricia was named one of the “Top 100 Thought Leaders in Business Behavior” and serves as an Ambassador of the Conscious Capitalist Institute. Patricia’s journalism career began at Forbes magazine and she was a public policy follow at Radcliffe College, Cambridge, MA. Her website is patriciaaburdene.com.
 

Looking Forward – Relevance Achieved

Wednesday, December 19, 2012 by

socially responsible investingLooking Forward – Relevance Achieved By Amy Domini, CFA, founder, Domini Social Investments ( Article from Fall 2012 - Special 20th Anniversary issue of GreenMoney Journal and  www.GreenMoney.com )

Looking forward ten, even twenty years, what will Socially Responsible Investing (SRI) have become? What will it have accomplished? What will the field look like? Today, I build a case for a good future. In a word, it will largely be marvelous.

Roughly 15 years ago, I spoke in Jackson Hole, Wyoming. It is a spectacular setting, one that makes a person proud to be in a great nation like ours, one that protects such places. Yet, as I reminded the audience that day, it had not been the public that had kept the Grand Tetons pristine. It was one man, John D. Rockefeller, who had purchased the land and given it to the nation.

This is the classic dilemma we in SRI struggle with every day. It is great that the Grand Tetons are a public treasure, but they became so on the backs of crushed labor forces, pollution and selfishness. One man made his money and then gave it away, but he set in motion the international oil industry, an industry that is robbing us of a climate, a future.

That day I challenged SRI to become relevant. Today, I can see clearly that it has. Over the next twenty years, the positions we have taken and the battles we have fought will lead to a universal understanding that what we have been saying, the way you invest matters, is absolutely correct. We will see our guiding principles integrated into the mainstream. We will be astonished at the acceptance and the impact that we have had.

How We Became Relevant - Performance Matters

Perhaps the most devastating argument we faced early on was the Modern Portfolio Theory (MPT). It argues that the previous “prudent man” idea of buying good stocks alone, created risk. Introduced in 1952 by Harry Markowitz, the original premise was simple: investors should focus on overall portfolio risk. Simply put, even if you love software, you still shouldn’t build an entire portfolio of software stocks. Astonishingly, this revelation won Mr. Markowitz a Nobel Prize in Economics and caused the entire financial services industry to argue that the individual risk characteristics of a company mattered little.

Against this backdrop, SRI seemed hopelessly old fashioned. We argue that each company, by virtue of the industry within which it operates, faces a series of risks that we label as risks to people or the planet. We then argue that taking too large a risk is not necessary and further, that it perpetuates an acceptance of these risks. Wall Street pundits stated with great authority, but with no basis, that our form of analysis flew in the face of Modern Portfolio Theory and so would fail. Our largest barrier was that, to use the vernacular, every smart person knew SRI was stupid.

The evidence proved otherwise. The MSCI KLD 400 Social Index has not only debunked the premise of MPT, but also shown that risk avoidance works. The index has outperformed -- and has done so with a lower standard deviation. Clearly, examining the risk of corporate behavior tells us something about a company that is useful to investors.

Why We Are Relevant – An Increase in Reporting

SRI practitioners have pushed for “extra-financial” data and have gotten it. At first, true comparative data on companies was extremely scarce in some areas of keen interest to the concerned investor. Any good researcher understands that the newspapers are a lousy place to start. The fact that we know that Apple sourced from Foxconn does not tell us what Hewlett Packard does. What is needed is data that is universally ascertainable, without the company answering a questionnaire (which allows them to self-define), and the data must be quantitative in nature, e.g. I don’t care as much about a statement that a company seeks diversity as I do about how many minorities have been hired.

Today, thousands of companies self-report. Whereas the one or two companies that issued Social Responsibility reports thirty years ago were real outliers, today it is so mainstream that Forbes magazine maintains a blog to follow them. Accounting giant PWC makes available the 2010 survey of CSR reporting on their website. The highlights: 81 percent of all companies have CSR information on their websites; 31 percent have these assured (or verified) by a third party. Their 2012 update contains examples of what to look for when writing (or reading) them.

Who was pushing for this disclosure? It wasn’t civil society, it wasn’t Wall Street; it wasn’t government. It was a loose confederation of concerned investors who consistently pushed for greater and more standardized “non-financial” information.

Why We Are Relevant – An Increase in Regulation to Disclose

Regulators are beginning to expand on the data corporations are required to disclose. Remember, there was no God-given definition of the right way to report financials to investors. In 1932, when reforms to protect investors began, regulators looked at some of the pre-existing methods and evaluated them. This led to audited annual reports on income statements and balance sheets. It led to quarterly unaudited reports. These had, in the past, come to be viewed as important in judging the financial soundness of a corporation.

However, the regulators did not stop with accounting issues. Given that the 1930s were a period of high unemployment, the number of company employees was considered important, and so its disclosure became mandated. There is no reason that more robust social and environmental reporting shouldn’t be in the financial reports. We already disclose a company’s hometown, without companies complaining of the inappropriateness and burden of so doing.

The Initiative for Responsible Investment at Harvard University maintains a database of Global CSR Disclosure requirements. In it we find 34 nations are taking steps. In 2009, Denmark, required companies to disclose CSR activities and use of environmental resources. In 2010, the United Kingdom required companies that use more than 6,000MWh per year to report on all emissions related to energy use. Malaysia, in 2007, required companies to publish CSR information on a "comply or explain" basis. Regulators, recognizing the societal costs of less than full cost accounting, are moving in to mandate disclosure.

Mainstreaming - With this solid base, here come the “big boys”

Conventional asset managers and the academic community have brought SRI to the mainstream. I began by saying the future for SRI is marvelous. Consider a world in which every major financial asset management firm demands that its staff study the social and environmental implications of the investments they make and bases recommendations upon it.

But this has already begun. Consider MEAG, the American portfolio management branch of Munich Re. Their team buys only publicly traded bonds which then back the insurance the firm issues. They use ESG criteria to give their research the edge and to avoid risk. When I met with their research team, I found that they use several of Domini’s Key Indicators. No, we don’t publish the indicators. It also was not a coincidence. The two firms independently discovered the same indicators to be telling because they both use the same logic in approaching the issues. Or there is UBS Investment Bank, where analysts specifically address the social, environmental or governance risks of a company they are recommending.

Finally, look at the all-important realm of academia, where MPT began. Just three recent examples are telling:

The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance by Professors Robert Eccles and George Serafeim, Harvard Business School. “… we provide evidence that High Sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market and accounting performance. The outperformance is stronger in sectors where the customers are individual consumers, companies compete on the basis of brands and reputation, and in sectors where companies' products significantly depend upon extracting large amounts of natural resources.”

Corporate Social Responsibility and Access to Finance by Beiting Cheng, Harvard Business School, Ioannis Ioannou, London Business School, and George Serafeim, Harvard Business School. “Using a large cross-section of firms, we show that firms with better CSR performance face significantly lower capital constraints. The results are confirmed using an instrumental variables and a simultaneous equations approach. Finally, we find that the relation is primarily driven by social and environmental performance, rather than corporate governance.”

An FDA (Food and Drug Administration) for Financial Innovation: Applying the Insurable Interest Doctrine to Twenty-First Century Financial Markets, by Eric A. Posner and E. Glen Weyl, Law School, University of Chicago. “We propose that when firms invent new financial products, they be forbidden to sell them until they receive approval from a government agency designed along the lines of the FDA, which screens pharmaceutical innovations. The agency would approve financial products if they satisfy a test for social utility …”

The Next Twenty Years

This article limits its scope to only one leg of the SRI stool. It does not discuss the growth of shareholder activism, which is vibrant. Nor does it address the mainstreaming of selling products with narrow and specific social purpose, also a burgeoning field. Rather, by looking at the application of social criteria to an investable universe alone, we see that barriers have been removed, and that now both a mountain of money, and the force of government and academia, will work with us and introduce our goals into mainstream investment thinking.

We know we can make money, government is increasingly with us, and academia is swinging our way. Now, the rapid acceptance of more robust and integrated accounting has done away with the last barriers. This brings us the assets to have impact. As society sees the full cost of traditional business behavior, SRI will be embraced as the single most important lever towards building a better world than the planet has ever seen.

 

Article by Amy Domini, who has worked for decades to advocate that financial systems must be used to create a world of universal human dignity and ecological sustainability. She authored or co-authored several books. Her most recent, Socially Responsible Investing: Making a Difference and Making Money, was published by Dearborn Trade in 2001. She writes on the topic frequently. Her articles have appeared on the Huffington Post, the OECD Observer, GreenMoney Journal and the Journal of Investing. She is a regular columnist for Ode Magazine.

Time magazine named her to the “Time 100 list of the world’s most influential people” in 2005. President Clinton honored her at the inaugural meeting of the Clinton Global Initiative, citing her role in making socially responsible investing a global trend. The Dalai Lama, during a Town Meeting on Ethics, heard her presentation and urged his audience to give it credence.

Ms. Domini works with high net worth individuals at the Sustainability Group in Boston; she also founded Domini Social Investments, LLC ( www.domini.com ), a no-load mutual fund family for socially responsible investors. Between the two firms, she manages roughly $2 billion in assets, all invested with environmental and social objectives in mind.

She holds the Chartered Financial Analyst designation and received her B.A in International Economics from Boston University. In 2006, Ms. Domini was awarded an honorary Doctor of Business Administration from Northeastern University. In 2007, she received an honorary Doctor of Humane Letters from the Berkeley Divinity School at Yale. Ms. Domini is a past trustee of the Church Pension Board at the Episcopal Church (U.S.A.). Among others, she is also a past Board member of the Governing board of the Interfaith Center on Corporate Responsibility, the National Community Capital Association, and the Social Investment Forum.

 

For more information go to- www.GreenMoney.com

 

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Marketing Biobased Content Credibly

Monday, December 17, 2012 by

Communicating the benefits of “biobased” content, the world’s newest ecological marketing term, is often tricky. Biobased represents all of green marketing’s traditional challenges — including greenwash — but has additional, unique challenges all its own. Happily, strategies and a credible third party label now exist.

Opportunities For Biobased Products and Packaging
There are many reasons for a business to use biobased content instead of traditional petroleum-based ingredients in their products, including:  it helps grow the farm economy, promotes energy independence, and helps manage carbon impacts, providing a useful hedge against potential future carbon taxes. Finally, biobased agricultural and other renewable material can mitigate petroleum’s wild price fluctuations, supply disruptions and geopolitics.

From an image and marketing perspective, a shift to biobased content can enhance reputation with stakeholders, including risk adverse investors. It can boost sales in the B2B and B2C sectors, as well as support and enhance many types of ‘green’ claims. Let’s look at these in more depth.

Selling opportunities are growing in the federal, commercial, and consumer markets. In the U.S., for instance, the federal sector will benefit from an Obama executive order signed in March 2012 to double the amount of biobased purchases.

Initial market research suggests consumer willingness to purchase biobased products and packages. Research commissioned by Genencor in 2011 suggests 40% of Americans are ‘aware of’ the term biobased and 77% will ‘definitely’ or ‘likely’ buy comparable biobased products.

In the consumer sector, biobased content can halo a brand.Coke’s new partly sugarcane-based PET ‘PlantBottle’ (with ‘up to’ 30% bioplastic), reinforces the brand positioning of Coke’s health-oriented Dasani bottled water and Odwalla juice brands. PlantBottle is now being licensed from Coke by H.J. Heinz for its iconic ketchup brand. An image of the bottle is below.

In 2010, 83% of U.S. adults identify with ‘green’ values, with various segments expressing their own reasons for likely interest in biobased. For instance, the LOHAS (Lifestyles of Health and Sustainability) segment represents the deep green consumers who take a holistic approach to all things sustainable and green; Naturalites look for organic food, natural personal care, cleaning and pet foods; Conventionals conserve natural resources; and status conscious Drifters who like to be seen carrying cloth shopping bags and driving a Toyota Prius. (Source: The Natural Marketing Institute).

Together, these consumers fuel a $290 billion U.S. market for natural products, renewable energy and more benign household products. Well-known brands that actively incorporate biobased content include Ford, Seventh Generation, Stonyfield Farm, and Procter & Gamble’s Gillette ProFusion and Pantene brands.

Marketing Challenges of Biobased

1. Unfamiliarity. Consumers don’t know the meaning of ‘biobased’. The term is not in the dictionary and is limited to scientific, engineering and B2B usages. USDA, which introduced a “USDA Certified Biobased Label” in early 2011, defines biobased as made from agricultural materials, forestry and marine based sources; so, even a well-informed consumer needs to learn that biobased products come from more than soy and corn.

2. Risk of Greenwash. Because biobased is unfamiliar but sounds ‘green’, consumers can infer such environmental benefits as “natural”, “renewable” and “biodegradable” which may or may not be the case depending upon the product. Benefits that are too easily and often incorrectly implied or overstated increase reputation risk.

Green marketing lessons of the past still apply. As Mobil learned the hard way, in the early 1990’s, their Hefty trash bags which were marketed as ‘photodegradable’ (although not called biobased) were pulled from the market after seven state attorneys general sued saying that the bags would disintegrate (i.e., break down into small fragments under the influence of heat and/or oxygen) but not degrade in landfills for which they were intended and advertised. (See the recently revised FTC Green Guides for further detail.)

3. Science. The ASTM D6866 scientific test standard upon which the USDA Certified Biobased label is based, helps define ‘biobased’ and accurately measure content.  Even with this credibility, results present communication challenges. Because the test measures biobased content as a percent of total carbon content, minerals and water are excluded. This can make comparisons difficult between products that contain minerals and water versus those with only biobased ingredients.

4. Red flags. Despite its many benefits, biobased content raises some red flags among some segments of consumers. For instance, some biobased products could compromise performance;  a case in point, the first Sun Chips ‘compostable’ bag made from corn-based PLA bioplastic had to be withdrawn because it was noisy; PLA manufacturer Natureworks quickly reformulated.

Also, some consumers take issue with biobased materials made from genetically altered crops (as is the case with most corn and soy grown in the U.S.), or are concerned about the effect agriculturally-based content may have on food prices.

Some may also question the sustainability of the harvesting practices. Finally, some consumers are concerned that biobased ingredients are imported rather than domestic, thus representing carbon impacts associated with transporting the materials from distant shores, or steal business from domestic farmers.

5. Confusion and misinformation. Still, many consumers — and even product marketers — mix up the terms ‘bio-based’ and ‘bio-degradable’. Both these properties are absolutely independent. Biobased refers to the origin of a material and biodegradable refers to the end-of-life. Biobased does not mean a material is biodegradable and vice-versa.


Success Strategies for Marketing Biobased Products and Packaging

To market biobased products and packaging with impact, relevance and credibility consider the following strategies:

1. Promote uniformity to let consumers compare biobased content by adhering to ASTM D6866. Disclose the source of the biobased content and dsitinguish between content that applies to product and package. Understand implications of grammatical constructions of ‘made with’, ‘made from’ and ‘made of’.

2. Follow FTC Green Guides (in the U.S.) and other applicable country guidelines when making environmental marketing claims of or related to biobased content. The recently updated FTC Green Guides provides specific guidance for such terms that biobased products can support such as ‘biodegradable’, ‘compostable’, and ‘renewable’.

Despite obvious consumer associations of biobased as ‘ecofriendly’, avoid what FTC describes as ‘generalized environmental benefit claims’.  Avoid images of ‘planets, babies and daisies’ that could imply the product is greener or contain more biobased content than in fact.
Make sure to portray environmental benefits from a total life cycle perspective.

3. Support claims with the USDA Certified Biobased label and other applicable biobased certifications to underscore credibility. Educate consumers on the meaning of ‘biobased’ and the underlying basis for the label.

4. Consider additional complementary sustainability-related certifications as appropriate. For instance, many products qualify forBPI’s CompostableUSDA OrganicU.S. EPA’s Design for Environment, and the independent Green Seal certification labels. The same is true for certification schemes in a number of other countries.

5. Carefully research and address consumer ‘red flag’ concerns. Reassure about performance and specify product applications.

Jacquelyn Ottman and Mark Eisen are colleagues at New York City-based J. Ottman Consulting, Inc., expert advisors to industry and government for strategic green marketing. They advised the U. S. Department of Agriculture on the launch of the USDA Certified Biobased label during 2011 and are now working with labelers on capturing the value of their participation in the program.

Jacquie Ottman is the author of The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Greenleaf Publishing U.K., 2011). Mark Eisen is the former environmental marketing director at The Home Depot.

Additional Blog Posts on this Topic:

From Growth Capitalism to Sustainable Capitalism: The Next 20 years of Sustainable Investing

Monday, December 3, 2012 by

By Joe Keefe, President and CEO, Pax World Management  (From the special 20th Anniversary issue of the GreenMoney Journal and www.GreenMoney.com )

Twenty years from now, we will have either successfully transitioned from our current economic growth paradigm to a new model of Sustainable Capitalism or we will be suffering the calamitous consequences of our failure to do so. Likewise, sustainable investing will either remain a niche strategy or it will have supplanted mainstream investing. This is the critical point we must embrace: sustainable investing can no longer simply present itself as an alternative to traditional investment approaches that ignore environmental, social and governance (ESG) imperatives; it cannot simply be for some people; it must actually triumph over and displace traditional investing.  

The current model of global capitalism - call it growth capitalism - is premised upon perpetual economic growth that must ultimately invade all accessible habitat and consume all available resources.[Footnote 1] Growth capitalism must eventually collapse, and is in fact collapsing, for the simple reason that a finite planet cannot sustain infinite growth. Moreover, the dislocations associated with this infinite growth paradigm and its incipient demise - climate change, rising inequality and extreme poverty, resource scarcity (including food and water shortages), habitat loss and species extinctions, ever more frequent financial crises, to name just a few - will increasingly bedevil global policy makers in the years ahead. The public sector is already experiencing a high degree of dysfunction associated with its inability to confront a defining feature of this system: the need for perpetual growth in consumption spurs a corresponding growth in public and private debt to fuel that consumption, which has roiled financial markets and sovereign finances across the globe. 

Meanwhile, the environmental fallout from this infinite growth paradigm is becoming acute. All of earth’s natural systems – air, water, minerals, oil, forests and rainforests, soil, wetlands, fisheries, coral reefs, the oceans themselves – are in serious decline. Climate change is just one symptom. “The problem is the delusion that we can have infinite quantitative economic growth, that we can keep having more and more stuff, on a finite planet.”[FN 2] The problem is an economic system that makes no distinction between capital investments that destroy the environment, or worsen public health, or exacerbate economic inequality, and those that are aligned with earth’s natural systems while promoting the general welfare. Under growth capitalism, a dollar of output is a dollar of output, regardless of its side effects; short-term profit is valued regardless of the long-term consequences or externalities. 

It is therefore discouraging that, in the U.S. at least, there is no serious discussion in mainstream policy circles about alternatives to the present system. Nor do I think there will be for some time given our current political/cultural drift. Political and economic elites, and the public itself, remain committed to growth capitalism, accustomed to “having more and more stuff,” for a host of economic, social and psychological reasons. As Jeremy Grantham has written, “[t]he problems of compounding growth in the face of finite resources are not easily understood by optimistic, short-term-oriented, and relatively innumerate humans (especially the political variety).”[FN 3] Our campaign finance system, wherein policy makers are essentially bought off by and incentivized to advance the very interests that stand to profit most from the current system, is no help. Making matters worse, large segments of the public do not even accept what science teaches us about climate change, or natural systems, or evolution, or a host of other pressing realities. The late U.S. Senator Daniel Patrick Moynihan once said that everyone is entitled to their own opinion but not their own facts. Today, it seems that a growing number of people, aided and abetted by special interests that stand to benefit from public ignorance, are increasingly opting for their own “facts.”

So, neither the public sector nor corporate and economic elites, as a result of some newfound enlightenment, seem poised to consider alternatives to the current system. To the contrary, their first impulse will be to resist any such efforts. This is the critical problem at the moment: while there is an array of powerful forces aligned against the type of sweeping, systemic change that is needed, there is no organized constituency for it. There are individuals and groups who support this or that reform, or who are focused on critical pieces of the larger puzzle (e.g., climate change, sustainable food & agriculture, gender equality, sustainable investing), but there is no movement, no political party or leader, no policy agenda to connect the dots.

That is a shame because there is a clear alternative to growth capitalism that has been articulated in recent years by a diverse body of economists, ecologists, scientists and other leading thinkers - including leaders in the sustainable investment community.[FN 4]

Although there is as of yet no unified theory or common language, let alone any sort of organized movement to speak of, what has emerged is essentially a unified vision, and that vision might best be described as Sustainable Capitalism.[FN 5]

Sustainable Capitalism may be thought of as a market system where the quality of output replaces the quantity of output as the measure of economic well-being. Sustainable Capitalism “explicitly integrates environmental, social and governance (ESG) factors into strategy, the measurement of outputs and the assessment of both risks and opportunities…. encourages us to generate financial returns in a long-term and responsible manner, and calls for internalizing negative externalities through appropriate pricing.”[FN 6] Essentially, business corporations and markets alter their focus from maximizing short-term profit to maximizing long-term value, and long-term value expressly includes the societal benefits associated with or derived from economic activity. The connections between economic output and ecological/societal health are no longer obscured but are expressly linked.[FN 7]

There is no question that growth capitalism must give way to Sustainable Capitalism. It’s as simple, and as urgent, as that. Over the next 20 years, the sustainable investing industry must play a pivotal leadership role in ushering in this historic transformation. We will need to connect the dots and catalyze the movement. Why us? For the simple reason that finance is where the battle must be joined. It is the financial system that determines how and where capital is invested, what is valued and not valued, priced and not priced. The sustainable investment community’s role is vital because the fundamental struggle is between a long-term perspective that fully integrates ESG factors into economic and investment decisions and our current paradigm which is increasingly organized around short-term trading gains as the primary driver of capital investment and economic growth regardless of consequences/externalities.

The notion that sustainable investing can simply keep to its current trajectory - a few more assets under management here, a few more successful shareholder resolutions there, a few more GRI reports issued, another UN conference, an occasional victory at the SEC - and achieve what needs to be achieved on the scale required is, frankly, untenable. We need to be more ambitious in our agenda.

We will also need to take a more critical stance, not only advocating for ESG integration but against economic and investment approaches that ignore ESG concerns. We will need to consistently critique the notion that externalities associated with economic output are somehow collateral, or that financial return is sufficient without beneficial societal returns, or that markets are inherently efficient and self-correcting. We will need to unabashedly offer sustainable investing not as an alternative approach but as a better approach - as the only sensible, responsible way to invest.

I believe the sustainable investing industry will also need to align itself with a more explicit public policy agenda - while remaining non-partisan - and work with like-minded reformers to advocate for that agenda. For example, sustainable investors should be sounding the alarm about resource scarcity and advocating for a massive public/private investment plan in clean energy, efficiency technologies and modernized infrastructure.[FN 8] The age of resource scarcity and the need for efficiency solutions is upon us.[FN 9] At Pax World, we offer a fund - the Global Environmental Markets Fund (formerly the Global Green Fund) - whose investment focus is precisely that. Our industry needs to fashion such investment solutions, and I believe there will be opportunities to do so collaboratively as well as competitively.

I also feel strongly that the greatest impediment to sustainable development across the globe is gender inequality. Advancing and empowering women and girls is not only a moral imperative but can unleash enormous potential that is now locked up in our patriarchal global economy. Sustainable investors need to press the case that gender equality needs to be a pillar of Sustainable Capitalism. At Pax World, we also have a fund - the Global Women’s Equality Fund - whose investment focus is exactly that.

In my view, the sustainable investing community should also be advocating for public funding of federal elections, either through a constitutional amendment or, absent an amendment, through a voluntary public funding system. The notion that we can tackle any major public policy issue, let alone undertake the epochal transition to Sustainable Capitalism, while politicians and regulators are captive to the very interests they are supposed to regulate, is beyond naïve. We will not be able to reform capitalism if we cannot reform Congress. 

Finally, asset management firms like my own will need to find ways to craft new, more persuasive messages, launch new products, form new partnerships, and fashion new distribution strategies and alliances that are focused on lifting the industry as a whole, because a rising tide will lift all boats. Pax World has taken a step in this direction in launching our ESG Managers Portfolios, where many ESG managers and strategies are now available under one roof in one set of asset allocation funds. There is more to be done - together, as an industry. 

The times call for leadership. The transition to Sustainable Capitalism is necessary and urgent, as is the triumph of sustainable investing over investment approaches that effectively prolong and exacerbate the current crisis. Twenty years from now, our industry will be judged by whether we have met this burden of leadership. Our impact either will be dramatic or inconsequential. We either will succeed or we will fail. We should resolve to succeed, and to work collaboratively toward that end. 

 

Article by Joe Keefe, President & CEO of Pax World Management, headquartered in Portsmouth, NH. Pax World manages approximately $2.5 billion in assets, including mutual funds, asset allocation funds and ETFs, all of which follow a sustainable investing approach. Prior to joining Pax World, Joe was President of NewCircle Communications (2000-2005), served as Senior Adviser for Strategic Social Policy at Calvert Group (2003 – 2005), and was Executive Vice President and General Counsel of Citizens Advisers (1997-2000). A former member of the board of US SIF (2000 - 2005), Joe was named by Ethisphere Magazine as one of the “100 Most Influential People in Business Ethics” for 2007, 2008 and 2011, and in 2012 was recognized by Women’s eNews a one of “21 Leaders for the 21st Century, where he was the sole male honoree. 

You should consider a fund's investment objectives, risks and charges and expenses carefully before investing. For this and other important information, please obtain a fund prospectus by calling 800.767.1729 or visiting www.paxworld.com . Please read it carefully before investing.

Equity investments are subject to market fluctuations, a fund’s share price can fall because of weakness in the broad market, a particular industry, or specific holdings. Emerging market and international investments involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, economic or political instability in other nations or increased volatility and lower trading volume.

Distributed by ALPS Distributors, Inc., Member: FINRA            PAX002590 08/13

Footnotes:

[1] See, William E. Rees, “Toward a Sustainable World Economy,” Paper delivered at Institute for New Economic Thinking Annual Conference, Bretton Woods, NH, April 2011, p. 4.

[2] Paul Gilding, The Great Disruption, Bloomsbury Press, 2011, p. 186.

[3] Jeremy Grantham, “Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever,” April 2011 GMO Quarterly Letter.

[4] I am thinking of such writers and thinkers as Wendell Berry, Lester Brown, Paul Gilding, Herman Daly, Thomas Friedman, Paul Hawken, Richard Heinberg, Mark Hertsgaard, Amory Lovins, Hunter Lovins, Bill McKibben, Donella Meadows, Jorgen Randers & Dennis Meadows, James Gustave Speth and, of course, E.F. Schumacher. Contributions from the sustainable investing community include Steven Lydenberg’s Corporations and The Public Interest, Robert Monks’s The New Global Investors, Marjorie Kelly’s The Divine Right of Capital, and The New Capitalists by Stephen Davis, Jon Lukomnik & David Pitt-Watson. See also the work of The Capital Institute, www.capitalinstitute.org

[5] Credit Al Gore, David Blood, Peter Wright and the folks at Generation Investment Management for putting a stake in the ground and endeavoring to define and popularize this concept.

[6] “Sustainable Capitalism,” Generation Investment Management LLP, 2012, p. 2.

[7] This notion of Sustainable Capitalism is not unlike the concept of “shared value” s advanced by Michael E. Porter and Mark E. Kramer. See, “Creating Shared Value,” Harvard Business Review, Jan-Feb 2011.

[8] See Daniel Alpert, Robert Hockett & Nouriel Roubini, “The Way Forward: Moving From the Post-Bubble, Post-Bust Economy to Renewed Growth and Competitiveness,” © 2011, New America Foundation, www.newamerica.net

[9] See Jeremy Grantham, “Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever,” supra; See also, “Resource Scarcity and The Efficiency Revolution,” Impax Asset Management, www.impaxam.com

 

For more information go to- www.GreenMoney.com

 

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Leading Universities for Sustainable Studies

Monday, November 26, 2012 by

The field of sustainability has evolved from a small niche of environmentalists into a transdisciplinary field that spans from local agriculture to global business. Today, people around the globe are much more aware of the problems facing mankind and the planet as a whole. The population is estimated to grow to nine billion by 2050, an increase that will only further strain our planet's natural resources. In these universities, teachers and students are committing their careers to developing the principles and practices that will allow the human race to achieve a sustainable future.

1. The University of California at Davis

UC Davis has a long history of teaching organic farming, but it wasn't until last year that sustainable agriculture was added to the curriculum. Today, UC Davis offers a degree in Sustainable Agriculture and Food Systems that explores the social, economic and environmental aspects of food and agriculture. This course of study goes beyond the farm and the table to the wider global impact of a sustainable food supply.

2. The Center for Alternative Technology

Located in Wales, the CAT eco-center focuses on all aspects of sustainable living and also provides classes for the public and professionals. Its permanent exhibitions of alternative technologies serve as the leading tourist attractions in the area.  In 2000, CAT began to teach post graduate studies, and in 2010 CAT built the Wales Institute for Sustainable Education (WISE). The WISE building currently serves as a lecture hall as well as a case study for sustainable architecture practices. Since 2008, the Center has offered a Professional Diploma in Architecture.

3. The College of the Atlantic

Students of the College of the Atlantic all share a single major: human ecology. Professors and students at College of the Atlantic approach sustainable issues through various areas of study – such as arts, sciences or business – offering a comprehensive approach to human ecology and its principles. The school also offers only a single graduate concentration, a Master's in Philosophy in human ecology.

4. Oregon Institute of Technology

In 2008, the Oregon Institute of Technology began the first four-year undergraduate degree program in renewable energy systems in the United States. This Bachelor of Science in Renewable Energy Engineering establishes the engineering principles that will promote and integrate alternative energy sources into mainstream society. The degree is taught in both Klamath Falls and Portland, Ore.

5. The Earth Institute at Columbia University

The Earth Institute is a branch of the Columbia University's NYC campus. The EI hosts a variety of majors and degree paths for environmental sciences. Students who are interested in conservation, engineering or evolutional biology can receive an education that will prepare them for careers that value the Earth.

6. The University of Pennsylvania

The University of Pennsylvania is located in Philadelphia and is often called "Penn". Like Columbia, it is an Ivy League school and is one of the oldest and renowned in the United States. The University offers a "Green MBA", which is actually a major in Environmental and Risk Management. The Green MBA teaches the "triple bottom line" principles that comprise a sustainable business model and is a good choice for those who plan to pursue careers with sustainable business initiatives.

7. Center for Sustainable Fashion at London College

This institution melds research, creativity and business to support a sustainable approach to the fashion industry. The Center for Sustainable Fashion at London College encourages social change through fashion trends. The institution challenges the status quo and encourages students to make a positive impact in an industry that can radically change the social and economic realities of our world.

8. The University of New Hampshire

 This school, located in Durham, New Hampshire, makes the list with its dual major EcoGastronomy. The major integrates sustainable agriculture with hospitality management and nutrition for a comprehensive and holistic approach to selecting and preparing food for health and taste.

9. Rocky Mountain College of Art and Design

Students of the Rocky Mountain College of Art and Design can select from a variety of different creative majors with an emphasis in sustainable practices.  Complementing sustainable architecture is the sustainable interior design initiative in which students learn the brass tacks of designing as well as the environmental impacts on human behavior and eco-friendly building materials and systems.

Nadia Jones is an education blogger for Onlinecollege.org where she writes about education news, online learning platforms, and accredited online colleges. She recently helped compile an Online College Catalogue for prospective students. Nadia welcomes your comments and questions at nadia.jones5@gmail.com.

 

Making Sense of the FTC Revised Green Guidelines

Wednesday, October 31, 2012 by

It only took them 20 years (The first Guides were issued in 1992), but then again, as the saying goes, every overnight sensation is twenty years in the making. Maybe the FTC Green Guide staff put in their 10,000 hours, but, at last, they nailed it. The revisions to the Green Guides, published on October 1, 2012, shows that the FTC is finally putting their foot down (both of them) about the term 'green', along with such related generalized environmental claims as 'eco-friendly' and 'Earth smart'.

While they are at it, they're advising against the use of any label, logo, seal or product name or image -- what I like to call 'daisies, babies or planets' --  that can imply any hint of environmental (or health) superiority without adequate scientific support. Because chances are such claims are nearly impossible to support, the risk-adverse will stay far away from suggesting same.

And just in time, too. Interest in green claims continues to swell despite tough economic times. As global population climbs to an unimaginable 9 billion by 2050, we'll no doubt find many more ways  for consumers to 'go green', with accompanying eco-language to boot (Will "Mars friendly" be next?) But for now, we're all still here. So hopefully there's still time to clean up the green marketing business so we can one day harvest the potential to lighten consumers' size-18 planetary footprint.

The lawyers at the FTC did what 'greening' requires everyone to do — to think holistically, acknowledging the need to back up environmental marketing claims with life cycle assessments. They obviously consulted with some smart ecologists and biologists because the revised Green Guides demonstrate a sophisticated understanding of sound science. The Guides don't explicitly state the science, but for us laymen, here's a quick crib sheet that can help you understand why they're saying what they're saying:

There's no such thing as a green product. Every product uses resources and energy and creates waste.
One attribute does not a green product make.  An Energy Star certified compact fluorescent light bulb has a tinge of mercury (and as such require a hazardous waste permit to landfill in quantities of five or more.) Organic strawberries grown in California and eaten in New York are responsible for creating so many greenhouse gases on the trip cross country we might as well eat berries conventionally grown in New Jersey. Paper made from sustainably-certified wood still needs to be bleached and / or otherwise processed with dangerous chemicals and shipped to Staples.

Should CFLs not be Energy Star qualified? Should strawberries destined to hit the road not be labeled organic? Should paper that's on its way to be bleached not be described as 'sustainable'? Definitely not! Let's simply be more specific, as FTC recommends, and not suggest they are totally 'green'. (More on this below.)

100% recycled content can be less 'green' than 10% recycled content.  Depending upon the nature of the recycled content and how far it must be shipped to a recycling center, environmental costs of shipping and other impacts can actually make a recycled product less 'green' than a virgin counterpart.
Natural is not necessarily green or more healthful. Arsenic is naturally occurring.

Sustainable is a moving target. Corn may be in plentiful supply today and able to be regrown year after year, but when water supplies wane, it may not be so 'sustainable' to continue to grow it, no matter how fast or how economically it can be converted into bio-plastics and biofuel.

So, green is a relative, rather than absolute, measure. The best way to determine relative greenness is a bona fide life cycle assessment covering all facets of a product's environmental impacts, from raw materials procurement straight through to disposal. This is duly acknowledged in the latest installment of the FTC Green Guides.

We are the next endangered species on the planet. The planet is not at risk, we are. (Yet another reason not to include images of planets in one's advertising or to make grandiose claims about saving it.) This is not a political issue, but an issue of our future, and particularly those of our kids' and their kids.

So it's incumbent upon every marketer, manufacturer, retailer, producer, and everyone else in the supply chain and their stakeholders to understand not just these Guidelines and ideally their scientific underpinnings, but to do what we can to make all green marketing work as it's supposed to.
We in industry -- and concerned consumers, too -- should get on the case of questionable green claims. In their infinite wisdom and thoroughness, the FTC provides lots of helpful information for marketers and to the public to make the process of reporting such claims easy. (The National Advertising Division of the Better Business Bureau can help too.)

Green marketing is just good marketing. As I've been saying for a while now -- and it is admittedly counter-intuitive, the best green marketing doesn't lead with a product's 'greenness'. The good news about many green(er) products these days is that, thanks to advances in design, materials and technology, they offer superior delivery on the primary benefits that consumers buy products for. So why not focus on those things instead of altruism and planets that don't need to be saved?

At a minimum, consider that environmental marketing, reflecting the planet itself, encompasses so many potential product-related attributes, organic, VOC, recycled, biodegradable, among them, as to render the term 'green' meaningless. Rather than confuse, even deceive, consumers intentionally or unintentionally with messages about 'eco-friendliness' and 'natural' (which in their infinite wisdom, the FTC refused to define) why not hone in on those green-oriented terms that a now mass market seeks via all its segmentary splendor: 'energy efficient', 'organically grown', 'water efficient', 'recyclable', among them, and render your marketing both relevant, targeted, and credible? (FTC would love you for being specific.)
Moreover, let's link those same 'green' attributes to the benefits they deliver to consumers. For instance, let's tout all things 'water efficient' as 'cost effective', and 'fuel efficient' as 'convenient (fewer fill-ups and the ability to drive in the HOV lane).

Does this mean we should not talk about 'the environment' at all?  Not in the least!  Consumers still want specific, well-documented and genuinely helpful environment-related information -- so let's include them in our marketing messages in its secondary or tertiary place in line with its importance on our customer's shopping list.

All of us environmental types like to talk about how, 'if we do our jobs right we'll put ourselves out of business'. Well, before we get run out of town for more greenwash and hogwash by a now enlightened FTC (and the Enforcement Division that stands ready to pounce) let's agree to put ourselves out of the 'save the planet' business and into the business of saving our customers some money, time, etc. in an environmentally sound way -- and make our marketing more legitimately green for our bottom lines, rather than our faces red with shame.

Jacquelyn Ottman is principal and founder of the New York City-based J. Ottman Consulting, expert advisers on green marketing to Fortune 500 sustainability leaders as well as several U.S. government labeling programs. The author of four books on the subject, her latest is The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding (Berrett-Koehler, February 2011).

 

Ted Ning is renowned for leading the annual LOHAS Forum, LOHAS.com and LOHAS Journal the past 9 years Ted Ning is widely regarded as the epicenter of all things LOHAS leading many to affectionately refer to him as ‘Mr. LOHAS’. He is a change agent, trend spotter and principal of the LOHAS Group, which advises large and small corporations on accessing and profiting from the +$300 billion lifestyles of health and sustainability marketplace.  The LOHAS Group is a strategy firm focusing on helping companies discover, create, nurture and develop their unique brand assets.  For more information on Ted visit  www.tedning.com