tag:blogger.com,1999:blog-90123025072719887272024-03-14T02:40:27.151-07:00World Inc. "For Better or For Worse?"When It Comes to Solutions — Both Local and Global — Businesses Are Now More Powerful Than GovernmentMark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.comBlogger54125tag:blogger.com,1999:blog-9012302507271988727.post-22273548041514039672009-05-19T13:27:00.000-07:002009-05-19T13:38:27.216-07:00Making Sense of a Swift and Severe World: What do the new CAFE standards mean for Innovation and Capitalism?<div><span ><span style="color:#000000;">On Tuesday May 19, 2009</span> </span><a href="http://www.whitehouse.gov/blog/A-Culture-Change-on-Climate-Change/"><span style="color:#3333ff;">President Barack Obama</span></a><span > </span><span ><span style="color:#000000;">proposed the highest auto fuel efficiency standards ever attempted in the United States. At the height of what might be capitalisms fall from grace and realignment with social needs, one of the<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2VWM-OMlgeAP_cYydKt1Q44yxhpf1wRdrgb-Oi4Gg7VnzYs4N81TYhWm9ytMx9lcSPBENeIZiwirD_C93m6OifdZfJ-4EZ4HZ9nd0DE3TavrKgX6voNTsUTPye6-EViNz4M74eq7luJfi/s1600-h/white+house.jpg"><img id="BLOGGER_PHOTO_ID_5337635704490002578" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 213px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2VWM-OMlgeAP_cYydKt1Q44yxhpf1wRdrgb-Oi4Gg7VnzYs4N81TYhWm9ytMx9lcSPBENeIZiwirD_C93m6OifdZfJ-4EZ4HZ9nd0DE3TavrKgX6voNTsUTPye6-EViNz4M74eq7luJfi/s320/white+house.jpg" border="0" /></a> worlds premier leaders steps up and proposes a new direction in our relationship with energy. Some of the far reaching goals of President Obama’s proposal include:<br /><br />- An updated Corporate Average Fuel Economy (CAFE) standard for all new automobiles beginning in model year 2012.<br /><br />- By 2016 the fleet average requirement would be 35.5 miles per gallon, and increase in fuel <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXwJKku228aJPPFSqi9mvRXNmgEkWeKQEAHli9bLov7MZuHAy6EygMQtHVXGJIihyphenhyphen65Em85BchthW7r6NE0nPeJS39pRx1gJgySVetVk2twQ8KJbgmlrYqv8Bud9AKzzbauBJdVW2WVFZr/s1600-h/gasoline.jpg"></a>economy by 8 mpg from the current CAFE standard of 27.5 mpg for cars and 24 mpg for light trucks.<br /><br />- The 35.5 mpg standard would be achieved four years earlier than under the current CAFE law, which requires a 35 mpg standard in model year 2020.<br /><br />- The projected oil savings of this program over the life of this program would be 1.8 billion barrels of oil; and tailpipe emissions would fall by more than 30 percent, according to White House officials.<br /><br />I'm going to be the naive one, and should know better that to touch this topic; but what do you all think...is industry and government generally in balance? I understand the desire for single national CAFE standards, but wouldn't competitive compa<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_IhzUn2VsKUAQQZEFwvO8dVuQK3zMTyjK9owd977FRVAE9vTdndIM2R87hGxmArjvgsjFAzExmI02YPhrCngoFnGOFV6J6DHH1XURvVwsuuaXlTyNPRmZsJVUTKO6GvrJw1QI7zjo686I/s1600-h/2008_toyota_prius.jpg"><img id="BLOGGER_PHOTO_ID_5337637068683947250" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 175px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_IhzUn2VsKUAQQZEFwvO8dVuQK3zMTyjK9owd977FRVAE9vTdndIM2R87hGxmArjvgsjFAzExmI02YPhrCngoFnGOFV6J6DHH1XURvVwsuuaXlTyNPRmZsJVUTKO6GvrJw1QI7zjo686I/s320/2008_toyota_prius.jpg" border="0" /></a>nies have sought cleaner fuels and autos regardless? I<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYKwgeeDFkWrzlD_9aElfcEUiiLHaM_LaOZfWn11WT4D1R8lTR6LVIjGaMV8f6FJTwamvIOpDSj8NV0g-QqziDMMLI7Bv1l9_gCc8UbdwEZjWUx0OXuEKiJnJUuH-3fUXX-5Q75F7k4YZ5/s1600-h/gasoline.jpg"></a>n his book</span> </span><a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.</span></a><span > <span style="color:#000000;">author Bruce Piasecki writes about social response product development efforts of Toyota in a chapter he titles,</span> “</span><a href="http://www.worldincbook.com/excerpt_04.html"><span ><span style="color:#3333ff;">Toyota </span><span style="color:#3333ff;">and the Search for the Superior Car</span></span></a><span ><span style="color:#000000;">”. In reading the chapter what is surprising is that Toyota spent a decade or more in R&D and beta testing of the Prius and the hybrid-electric power train as they foresaw in many ways, the announcement by President Barack Obama on the 19th of May 2009. They could not predict the exact date, the exact time, or even who the US leader would be to make such a sweeping change in CAFE standards for a new century. But Toyota had the foresight to know that such swift and severe change would arrive and it would be best to position their products and core customers for this day. And now that the day for upgrading auto efficiency standards into the 21st Century has arrive? Toyota again is prepared to address and meet this change in CAFE with its existing product family and core technologies already in mass production. It should not be surprising to think that Toyota is already thinking one or two administrations into the future on social policy changes and the impact of innovation.<br /><br />Does the policy push the innovation outcome or vice-versa? It seems like a less exciting world if we all wait for the policy mechanisms to be put in place to move te<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjlzudFMRw_aiBbGIf-yshoRUbfqQKXlTAtqr8n_HS7aXTvGMKoMiAzsNEoiZ467eDXlNlfcyjKlwsg-IF4ApNbSv5WkW2sERfuo1_1qOfNwUCTo-gOBipph1avBMWgvetCRN4lAieYYdQ/s1600-h/edison.jpg"><img id="BLOGGER_PHOTO_ID_5337636345703224242" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 221px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjlzudFMRw_aiBbGIf-yshoRUbfqQKXlTAtqr8n_HS7aXTvGMKoMiAzsNEoiZ467eDXlNlfcyjKlwsg-IF4ApNbSv5WkW2sERfuo1_1qOfNwUCTo-gOBipph1avBMWgvetCRN4lAieYYdQ/s320/edison.jpg" border="0" /></a>chnology toward consumer wants/desires. And to me CAFE has been a veil placed between industry and consumers that does not allow for innovation to move at a pace it could move. Perhaps we see this barrier in the utility, healthcare and consumer products industries as well?<br /><br /><strong>Would Thomas Edison have been happy with the pace of innovation on lighting to get where we are with the CFL?<br /></strong><br />I understand the machinery of industry and government needing to have coalitions that can move markets in a balanced path forward, for competitive reasons. But the pace of policy should not dictate the adoption of innovation from my personal perspective, particularly if the innovation is for the great good of a company or society at large.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</span></em></span><br /></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><span style="font-size:85%;"><em><br /><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </em></span><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><span style="font-size:85%;"><em> <span style="color:#000000;">and</span> </em></span><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><span style="font-size:85%;"><em> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism</span>.</em></span></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-89023974938111590092009-02-18T09:15:00.000-08:002009-02-18T10:41:34.688-08:00A Stimulus for a Better World: Give them Sustainability without Compromise…<span style="color:#000000;"><span style="font-size:130%;"><strong>Sustainability sounded good when money was flowing in. But now that the economy is broken, business sustainability is taking a back seat to business survival. However, now more than ever, this is a time to advance your business case for sustainability as a top-line and bottom-line strategy for not just survival, but long-term growth and profitability.</strong><br /></span><br />The triple bottom line is alive and well in this broken economy. Smart corporations are embracing principles of business sustainability and positioning their business units, products and services for new growth. There are early-adopters, a late-majority and laggards in every distribution of companies that choose to <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLGWj2H1HcLE1TWZf5skMH0WcyMdMVi-zOzWKYHth0bTIslst5iWw-5FIxFoj96I__mi1xNNaYlK_HkYnJvgjDoo22PF6LqndtSA_hWn53dPe8-T7JAhrjhsnrhu8_0v72tOUezbKo5Eda/s1600-h/kraft8.jpg"><img id="BLOGGER_PHOTO_ID_5304191310217565266" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 238px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLGWj2H1HcLE1TWZf5skMH0WcyMdMVi-zOzWKYHth0bTIslst5iWw-5FIxFoj96I__mi1xNNaYlK_HkYnJvgjDoo22PF6LqndtSA_hWn53dPe8-T7JAhrjhsnrhu8_0v72tOUezbKo5Eda/s320/kraft8.jpg" border="0" /></a>introduce new business strategy and processes to their organizations. In the case of sustainability it is more of a corporate value that needs to be accepted and then injected into the very culture of the corporation for it to become operational and of value. That point is lost on many corporations that simply seek to overlay some sustainability principles onto a few of their facilities or products and wait for positive financial returns. A passive speed-dating approach to corporate sustainability will not work.<br /><br />To be successful a corporation has to proactively adopt sustainability principles, make them their own, align them across business units, and devise clear goals for operational excellence, corporate responsibility, and product strategy. This can only be accomplished through complete senior level buy-in and support. Additionally the business units have to align themselves with the new corporate value for sustainability, develop their own goals and performance indicators toward the new value, and make it relevant to their employees, customers and stakeholders.<br /><br />Developing, implementing, monitoring and adjusting corporate sustainability for continuous improvement is not an easy task. Corporate sustainability embodies values, vision, goals, actions and improvements. It is as much a process as it is a tangible product or service. To reap the full benefits of sustainability, companies have to be prepared for a cultural change, a process that takes time, and a new way of doing business that is more complex, but ultimately more profitable.<br /><br /><strong><span style="font-size:130%;">Survival of the Fittest…Darwin Says Sustainability is Evolution<br /></span></strong>This all sounds reasonable right. And you are going to tell me that the economy is broken and your company is in survival mode. You don’t have the time, resources or support to think about business sustainability. And this sounds very logical to me; except that you are compromising the future success of your corporation with survival tactics, not with sound business strategy. Darwin’s mantra “survival of the fittest” holds true to business, but it is not just solid financials, or cutting costs, or restructuring in tough markets that lead to survivors. In two decades from now the companies that are still alive and thriving will have evolved. On one hand they have superior products and leaders that know the fundamentals of operating a strong business. On another hand they will have transformed to <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2BNpnjGwa3Fot28FgB8DwdBwLIC15JGB6lhvpKux0hW8N8jhrud1pwmdvi9E4y9eBvl2FDy49bmkd6IruH2WEyHvJimdPwu5odGUtfmnuGpGrWVc3vek9MxNmX6sBYFFXuHY3TDD-4_cX/s1600-h/survival.jpg"><img id="BLOGGER_PHOTO_ID_5304191663077913810" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 213px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2BNpnjGwa3Fot28FgB8DwdBwLIC15JGB6lhvpKux0hW8N8jhrud1pwmdvi9E4y9eBvl2FDy49bmkd6IruH2WEyHvJimdPwu5odGUtfmnuGpGrWVc3vek9MxNmX6sBYFFXuHY3TDD-4_cX/s320/survival.jpg" border="0" /></a>adopt principles of sustainability that allowed them to evolve their business, products and operations so that they can be fit enough to survive energy price volatility, natural resource and commodity constraints, dynamic and shifting customer preferences for greener products, and new regulatory or market requirements.<br /><br />What I mean by this is that the financial and business landscape has changed and is transforming. Business as usual may sustain your operations for a few months or years; but ultimately government, business and consumers are asking for more. And the “more” that is being requested is not necessarily more money. It is a smarter, better run, less risky and ultimately more profitable business that views the world through the lens of sustainability. That lens views the world more holistically, with people, planet and profit as a more balanced screen than just profit. Twenty and thirty years ago the screen of sustainability was not only foreign to corporations; it was rejected and defied all principles of capitalism and why businesses existed. Today however, the evolution of business sustainability is brining new life to modern corporations that better understand their relationship with the natural, physical and human world; and knowing that for their survival they need to become more sustainable enterprises. That means reducing waste, reducing water and energy consumption, reducing greenhouse gas emissions, designing better products, minimizing their transportation footprint and doing all this while still making a profit.<br /><br />For those companies that have embraced business sustainability and proactively pursued sustainable business strategies, the following benefits are most frequently cited (1) lower operating costs; (2) a license to operate; (3) enhanced corporate reputation; (4) more efficient and responsible use of commodities and natural resources; (5) more competitively priced products and higher margins; (6) a re-alignment of products that meet customer expectations for price, performance and quality, but also for addressing specific social needs like clean water, more sustainable transport or cleaner energy; (7) product and service differentiation among competitive landscape; (8) attraction of new customers in competitive markets; (9) gain in market share; (10) new revenue toward top-line growth and greater earnings toward profit and bottom-line growth.<br /><br /><strong><span style="font-size:130%;">Sustainability without Compromise: Crafty Solutions at Kraft Foods<br /></span></strong>With revenue topping $37 billion in 2007 Kraft Foods is the US's #1 food company and #2 in the world (behind Nestlé). Its North America unit makes the world's largest cheese brand (Kraft), owns the cookie and cracker business (Nabisco) and is the maker of the childhood favorite, Oreos. The company has more than 103,000 employees worldwide. In addition the company operates 187 manufacturing and processing facilities, including 51 in the US, 13 in Canada, and 123 in 44 other countries. Wal-Mart accounts for some 15% of Kraft's sales. Like all companies, Kraft Foods is feeling the economic crunch. But this market leader is not just looking to survive, they are seeking to thrive. So, Kraft has begun to infuse a culture of sustainability throughout its business units, operations and people. To “make sustainability its own”, Kraft has designated</span> <a href="http://www.kraftfoodscompany.com/About/sustainability/focus-area-dynamic.htm"><span style="color:#3333ff;">Six </span><span style="color:#3333ff;">Sustainability Focus Areas</span></a>:<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVjrPGln8xFAbeFGtGHQHVFTH7wL4s9as3vzQC9WJaRNpWEUgp-p4BTJcWVC2I-u9GYtVTELEjA6atpi3Jf7OTtupPo8joY4fRqNnFkvUEYQqdAql6yIr8e05w4E4yRvgwQlVvK2vWeK1R/s1600-h/kraft+logo.gif"><img id="BLOGGER_PHOTO_ID_5304188758699033106" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 59px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVjrPGln8xFAbeFGtGHQHVFTH7wL4s9as3vzQC9WJaRNpWEUgp-p4BTJcWVC2I-u9GYtVTELEjA6atpi3Jf7OTtupPo8joY4fRqNnFkvUEYQqdAql6yIr8e05w4E4yRvgwQlVvK2vWeK1R/s320/kraft+logo.gif" border="0" /></a><br /><span style="color:#000000;">1. Transportation & Distribution<br />2. Agricultural Commodities<br />3. Packaging<br />4. Energy<br />5. Water<br />6. Waste<br /><br />Kraft chose to focus on these six priority areas because they felt that is where they could have the greatest impact on their business. And Kraft’s focus on these six areas is paying off. If fact from a baseline year of 2001 Kraft has monitored performance toward key performance indicators (KPIs) and demonstrated continuous improvement. For example, since 2001 Kraft has decreased its global water consumption by 34%, energy use by 25%, carbon dioxide emissions by 30%, and solid waste by 16%.<br /><br /><strong>Operational Excellence</strong> - But performance on KPIs is just one indication of how a sustainability strategy is performing. Kraft has also adopted a triple bottom line business sustainability culture and it is beginning to show in their operations, products and performance. For example, in 2007 Kraft Foods adopted</span> <a href="http://www.ecovation.com/pdfs/lowville.html"><span style="color:#3333ff;">anaerobic digester technology</span></a> <span style="color:#000000;">at their Lowville, NY facility that processes cheese. The Kraft facility produces whey as a byproduct waste of cheese processing. The waste whey is consumed by bacteria in the anaerobic digester at the Lowville facility and methane gas is produced during the process. The methane gas is then used by Kraft to offset 25-30% of the on-site energy needs. Kraft’s use of anaerobic digester technology not only reduces the amount of waste they have to either proc<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh48Za9eM0kJxCPNY8pW48oH-Wi96TdxzNn5UNr3xLD4mpxg69MthHvj5tc67qcYHig2krJiHMdJiOh68EfWWYnf4H_0OP3JgO_W1YOVsBr1aHXflS4GosDdBGliE3IyiMqKYR0eL01wcap/s1600-h/kraft4.jpg"><img id="BLOGGER_PHOTO_ID_5304189293710171986" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 294px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh48Za9eM0kJxCPNY8pW48oH-Wi96TdxzNn5UNr3xLD4mpxg69MthHvj5tc67qcYHig2krJiHMdJiOh68EfWWYnf4H_0OP3JgO_W1YOVsBr1aHXflS4GosDdBGliE3IyiMqKYR0eL01wcap/s320/kraft4.jpg" border="0" /></a>ess or transport offsite (whey waste), it produces onsite energy to minimize Kraft’s operational expenditure.<br /><br />Another example at Kraft Foods is their</span> <a href="http://www.dpwn.de/dpwn?skin=hi&check=yes&lang=de_EN&xmlFile=2010246"><span style="color:#3333ff;">underground storage facility</span></a> <span style="color:#000000;">that is built into a reclaimed limestone mine in Springfield, Missouri. The facility is Kraft’s largest refrigerated warehouse and a strategic distribution center for the company. Because the facility is built into a limestone mine that is 30 meters below ground, a constant temperature of 15.5 degrees Celsius is maintained year round. The constant temperature translates into significant energy savings for Kraft Foods. In fact the company estimates that the Springfield warehouse uses 65 percent less energy than comparable above-ground facilities.<br /><br /><strong>Superior Products and Supply Chains</strong> - And, as one of the world’s larger food and beverage companies Kraft Foods is using its market size to influence its suppliers while providing the scale necessary to introduce more sustainable products to market. Case in point is Kraft’s commitment to buy coffee beans certified by the</span> <a href="http://www.kraftfoods.co.uk/kraft/page?siteid=kraft-prd&locale=uken1&PagecRef=2526&Mid=41"><span style="color:#3333ff;">Rainforest Alliance</span></a><span style="color:#000000;">, an independent NGO that that works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior. Kraft Foods is now the world’s biggest buyer of Rainforest Alliance certified coffees. Kraft’s commitment to the Rainforest Alliance and sustainable agriculture practices in coffee communities has not gone unnoticed. In 2007</span> <a href="http://www.treehugger.com/files/2007/01/mcdonalds_uk_sw.php"><span style="color:#3333ff;">McDonalds UK</span></a> <span style="color:#000000;">decided to switch 100% of their coffee to Kraft Foods Kenco Brand which is Rainforest Alliance certified. The switch by McDonalds happened in part due to changing customer</span><span style="color:#000000;"> preferences for more sustainable products. Th<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTrCvtfFhpYpMMWle36vP9KGGYMwry0mDKLYjIQmMgjjv2_98qxI3eYx_KK6czYBZ5xBz6liTONIGScw3z-11LAT5SDwZ57BIXwsb-unXp4zKAfqUiDOZbNDSGgFCBsMxYcIgJE4VlA_6l/s1600-h/kraft2.jpg"><img id="BLOGGER_PHOTO_ID_5304189096891683810" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 281px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTrCvtfFhpYpMMWle36vP9KGGYMwry0mDKLYjIQmMgjjv2_98qxI3eYx_KK6czYBZ5xBz6liTONIGScw3z-11LAT5SDwZ57BIXwsb-unXp4zKAfqUiDOZbNDSGgFCBsMxYcIgJE4VlA_6l/s320/kraft2.jpg" border="0" /></a>e McDonalds decision to purchase Kraft’s coffee opened an entire new account and added market share to Kraft’s coffee line.<br /><br /><strong>Sustainable Packaging</strong> - Recognizing that the shipment of its products from manufacturing facilities has an environmental impact in the form of greenhouse gas emissions, namely CO2, Kraft has made efforts to minimize the amount of packaging materials it uses for shipping and it has redesigned some product packaging so that shipping containers weigh less. For example, Kraft has redesigned some salad dressing bottles so that they use less material, resulting in less waste, and a</span> <a href="http://www.shelfimpact.com/archives/2008/07/krafting_a_better_saladdressin.php"><span style="color:#3333ff;">19% decrease</span></a> <span style="color:#000000;">in unit weight, and less fuel required to transport the product to market.<br /><br /><strong>Social Responsibility</strong> - Kraft recognizes that the packaging of its products carries a large ecologic footprint; that is why Kraft has also partnered with</span> <a href="http://www.terracycle.net/"><span style="color:#3333ff;">TerraCycle Inc.</span></a> <span style="color:#000000;">on a packaging-reclamation program for “unrecyclable” items in which the packaging is “upcycled” into new consumer products available at retail stores. TerraCycle Inc. “upcycles” Kraft products like used Capri-Sun drink pouch containers, reclaims, cleans and uses them in new products like tote bags. The TerraCycle Inc. and Kraft Foods partnership is raising awareness about sustainability; product reclamation, reuse and recycle; and using Kraft’s scale and TerraCycle’s creativity to divert <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpmx6mdct0ELuTCc3RW3cMtUJn_u4C52yzSp0tJk_JR92uVF4x1ohMiC05_MmlmXp2dkxXI05OJzIgsGqpFLjbVxTsERIQ2Rz-a24IDpcZeFzgLItfEFm7PBDD1v37pkY0syD3iRqb1FW0/s1600-h/kraft3.jpg"><img id="BLOGGER_PHOTO_ID_5304188889424672354" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 172px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpmx6mdct0ELuTCc3RW3cMtUJn_u4C52yzSp0tJk_JR92uVF4x1ohMiC05_MmlmXp2dkxXI05OJzIgsGqpFLjbVxTsERIQ2Rz-a24IDpcZeFzgLItfEFm7PBDD1v37pkY0syD3iRqb1FW0/s320/kraft3.jpg" border="0" /></a>waste from landfills. Kraft is working with TerraCycle Inc. on creating a broader national network of collection points, often in partnership with local schools. In fact, Kraft donates two cents to participating schools and other groups for every Capri-Sun pouch collected as incentive for working with TerraCycle in this program.<br /><br /><strong><span style="font-size:130%;">The Most Fit are Sustainable</span></strong><br />During a financial crisis it is reasonable and necessary to go into “survival mode”. But what does that really mean? For some companies survival mode means getting rid of unnecessary expenditures, underperforming business units and people, and tightening cost controls. These are necessary in many cases. But survival is also about adaptation and transformation. We know the financial markets are changing, we see a shift in consumer behavior, and also a new era of reform in government and business. The adoption of sustainability principles into a corporate culture may be, for the right corporations, a necessary tool for survival. Kraft Foods demonstrates one large corporation’s decision to “get more fit” through the adoption of sustainability principles and values into its corporate culture, and ultimately into its products. And, as demonstrated in Kraft’s operational efficiency at its facilities or in accessing new markets with more sustainable product options, those that are “sustainability fit” can thrive.<br /><br /><br /><span style="font-size:85%;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</em></span></span><br /><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><span style="font-size:85%;"><em><br />Want to get real about the future of energy, natural resources and capitalism, go to </em></span><a href="http://www.ahcgroup.com/"><span style="font-size:85%;"><em>www.ahcgroup.com</em></span></a><span style="font-size:85%;"><em> and </em></span><a href="http://www.worldincbook.com/"><span style="font-size:85%;"><em>www.worldincbook.com</em></span></a><span style="font-size:85%;"><em> to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</em></span>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-46570619880769814932009-01-25T16:39:00.000-08:002009-01-25T17:16:54.930-08:00The Peculiar Disorder of Energy and Environment<span style="color:#000000;"><span style="font-size:130%;">Across the globe the race has started. Instead of one whose outcome will be judged by who lands on the moon or proliferates nuclear weaponry first, this race is more peaceful, but just as political and significant as ou<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjycg8m3KKNkcHIhSQQfbTgKv_G6rP1nkfZu1kEj2LMCJLJgEoM5THsx1QwG-sWdrvKBWKZhrQ6TD5-J7RRgb3txGRRr14ci0BeZPtRpMZF_Z6DjIDcpaQLvF9hqWNavTUZ4Hm-Iz1s6wkE/s1600-h/energy3.jpg"><span style="font-size:130%;"><img id="BLOGGER_PHOTO_ID_5295400600758098434" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjycg8m3KKNkcHIhSQQfbTgKv_G6rP1nkfZu1kEj2LMCJLJgEoM5THsx1QwG-sWdrvKBWKZhrQ6TD5-J7RRgb3txGRRr14ci0BeZPtRpMZF_Z6DjIDcpaQLvF9hqWNavTUZ4Hm-Iz1s6wkE/s320/energy3.jpg" border="0" /></span></a>r past technological missions. With a burgeoning population of 6.5 billion people and a global economy that seeks to grow, demand for energy, material and natural resources are at an all time high. We are now seeing price signals in the marketplace that tell us that constraints to our growth include the availability, reliability and dependability of energy and natural resources like water. In 2007 the price per barrel of oil exceeded $100 for the first time in history. Reports of global energy demand brought on by growth in China and Asia Pacific indicated energy demand was higher th</span><span style="font-size:130%;">an supply. In addition the political environment of 2001-2008 marked a shift in debate about global climate change and how humans should think about their carbon footprint. While no particular tipping point can be referenced, a sandwich of influences has been made by government, industry, non government organizations (NGOs), trade associations, intergovernmental coalitions and consumers.</span><br /><br /><strong><span style="font-size:130%;">The Peculiar Disorder of Energy and Environment</span></strong><br />This is a tale of tragedy, coming of age, adventure and love. A century from now the story of energy and environment might just be the great American story. For now it begins like this…Energy and environment don’t get along. They have been at odds with one another since the moment oil came bubbling out of the ground and someone discovered that black gold could produce energy; lots of energy. Energy and environment have quite a peculiar relationship. One might call it a disorder. Like illnesses that don’t go away, even with the right treatment, rest and care; the energy and environment disorder has plagued global politics, domestic environmental policy, and philosophic debate on environmental economics for greater than a century. This debate began to hum in the late 1960s and early 1970s, subsided some in the early 1980s but is again a hot button corporate and government policy issue on the minds of all Americans and President-elect Barack Obama as he positions himself on the world stage.<br /><br /><span style="font-size:130%;"><strong>Three Decades of Regret</strong><br /></span>I once heard a senior executive for a prominent State Energy Office tell an audience of college students in Upstate New York that when he got into the energy business in the early 1970s he was full of optimism and focus. His intent he said, was “to dedicate a career in transforming how industry, businesses, government and consumers perceive and use energy in the US”. Thirty years later, with a tone of regret and humbled defeat this senior leader issued a word of caution to his audience, “don’t listen to conventional wisdom…seek out answers to the complex energy and environmental challenges of the day…and find ways to work together”.<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaD2d9vkA40aQ6kA6uJSApWp3OQRBrZd7owdpLthaRPrdbq9ZB0jlbvD68JyfZVoDevjlxsdPtAUiPBqTBBI1_EA0gL3ebrOXx2I39sEt-Fonq0eaBrRTbN_pGBSjC6ocRBY4EjtGV6IUh/s1600-h/energy2.jpg"><img id="BLOGGER_PHOTO_ID_5295400433055644626" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 241px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaD2d9vkA40aQ6kA6uJSApWp3OQRBrZd7owdpLthaRPrdbq9ZB0jlbvD68JyfZVoDevjlxsdPtAUiPBqTBBI1_EA0gL3ebrOXx2I39sEt-Fonq0eaBrRTbN_pGBSjC6ocRBY4EjtGV6IUh/s320/energy2.jpg" border="0" /></a><br />The career state energy leader noted that his thirty year career began with a desire to develop new energy technologies, reduce energy demand, promote energy efficiency and deploy renewable energy technologies on a broad scale. Reflecting that the amount of renewable generation in the US continues to be marginal, that the fuel economy of vehicles has stayed roughly the same and other trends in how we use electricity to the size of our homes and increasing energy demand, the senior state energy leader admitted that he had wished his career would have had more of an impact.<br /><br />The story about the state energy leader is a mirror image for many within industry and government over the past 30 years. I occasionally hear similar sentiments from senior managers at large electric utilities, big chemical, oil and automotive companies. In each case their reflection of the past is rich with reasons why not more change has occurred, but one can tell in listening to them, a new urgency to make good on the last five years of their professional careers, or desire to launch new careers in “retirement” that take advantage of new opportunities for advancing alternative and renewable energy.<br /><br /><strong><span style="font-size:130%;">At Least We Know Our Devil by Name<br /></span></strong>In December 2008 Bruce Piasecki, president and founder of</span> <a href="http://www.ahcgroup.com/"><span style="color:#3333ff;">AHC Group, Inc.</span></a><span style="color:#000000;">, and author of</span> <a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc</span>.</a>,<span style="color:#000000;"> corresponded with a former Senior Vice President of External Affairs for a well known oil and gas giant. This oil and gas executive was<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiF5PLfeMMJ0FNyvHd1ko3EbaktP5wxyJD_e3uvcYmUr3TJAz08uULVdVckZUrXdE0T5iOb1rEWCn8884h9T9k3tCrCYTLYeREXVSD3NlE69HTlRttVsDDezTXi6eNpiNVGKIY89t51zN1y/s1600-h/energy4.jpg"><img id="BLOGGER_PHOTO_ID_5295400823258051554" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiF5PLfeMMJ0FNyvHd1ko3EbaktP5wxyJD_e3uvcYmUr3TJAz08uULVdVckZUrXdE0T5iOb1rEWCn8884h9T9k3tCrCYTLYeREXVSD3NlE69HTlRttVsDDezTXi6eNpiNVGKIY89t51zN1y/s320/energy4.jpg" border="0" /></a> also a past participant in the AHC Group’s leader-to-leader benchmarking exchange known as the</span> <a href="http://www.ahcgroup.com/affiliates.htm"><span style="color:#3333ff;">Corporate Affiliate Program</span></a>. <span style="color:#000000;">After a brief discussion on recent happenings on the economy and politics, Bruce Piasecki and this retired corporate energy leader found themselves reflecting on the <strong>Peculiar Disorder of Energy and Environment</strong>. Over the past thirty years, and in the context of looking forward toward new energy challenges and opportunities in this time of what seems to be a geo-transformational shift in how we perceive and use energy, the former oil and gas SVP noted:<br /><div><div><div><div><div><br /><blockquote><span style="color:#000099;">“Over the past couple of weeks, I have read a number of articles and comments which seemed to have fully described the history of energy/environmental efforts…there seems to be little question that the media and activists are searching for the energy/environmental holy grail and that there have been many false starts over the past 40 years…Each addition to the energy mix brings its own set of problems and attributes…<br /><br />- Methanol was thought by GW Bush to be the solution, but we learned that the consequences of its use were unacceptable. MTBE had the same consequences.<br /><br />- Ethanol was to be the great salvation to the environment, farmers and consumers but we now learn that the consequences of its use are far more damaging than originally advertised. </span><span style="color:#000099;"><br /><br />- Solar was to be a major contributor to the energy mix but it is now reported that the cleaning solution used to cleanse the panels (and chips) is worse than the nation’s largest coal fired power plant.<br /><br />- Boone insists that wind is the real solution but we cannot store its product and the visual pollution (see Palm Springs) is awful, and on occasion, the wind does not blow. Importantly, wind is thought to exist where people do not reside and the transmission facilities that are required to move Boone’s products to market will cost billions.<br /><br />- GM is promoting its Volt which they contend will travel at least 40 miles before it uses a hydrocarbon. And, it requires several hours to recharge. Good for the power companies that can keep their alternative fuel power plants operating all night.<br /><br />- The Hybrids are a very good development but their cost precludes most consumers from making the shift.<br /><br />- Natural gas vehicles are great fleet vehicles, since they can be returned to the company base each night so that they can be refilled.<br /><br />..All of the above are honest attempts to move the world away from hydrocarbons to another energy source. In the meantime, activists would cause the world to discontinue its search for more oil, gas and coal and to discontinue the use. As the economy improves, we will again need major additions to our power sources, yet opposition to new coal fired facilities continue to mount. And we have difficulty determining how many wind turbines or solar panels that we will need to construct to substitute for one new coal fired plant.<br /><br /><strong>My primary concern is the need to accurately evaluate what level of energy that the world will require for the next 25 or so years and then determine the sources of energy that will provide that <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6WpEQQ86IDqFd-CKyI0NLY7XtpR1taz9UBZSx6eowgXkK0m0Q-MbZ_IjzNPsBHyLiR33HJWwRfw-p_N4jtSK7PnADUujKjUgtIfhpAk6V5PBeDc51EZCtgGTcgSA28WoU1PpgC01mD0Qq/s1600-h/energy1.jpg"><span style="color:#000099;"><img id="BLOGGER_PHOTO_ID_5295401168306301842" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 213px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6WpEQQ86IDqFd-CKyI0NLY7XtpR1taz9UBZSx6eowgXkK0m0Q-MbZ_IjzNPsBHyLiR33HJWwRfw-p_N4jtSK7PnADUujKjUgtIfhpAk6V5PBeDc51EZCtgGTcgSA28WoU1PpgC01mD0Qq/s320/energy1.jpg" border="0" /></span></a>requirement. </strong>The US has 250 million or more existing vehicles that will not be converted to any other energy source. Likewise, many cities and businesses will need increased power, on a consistent basis. <strong>If we are to discontinue our use of the energy sources on which we have relied in the past, what will we use? If we inhibit the search for historic sources, what will be the consequences if the alternatives that are being discussed do not fill the gap?</strong> We know that extended periods of time are required to find and bring to market the historic sources. Once we make the decision to block this search, we will have set in motion the imperative development of substitutes that are not proven to be sufficient. <strong>And, the consequences of the use of the replacement of what we now use with the yet to be determined substitute(s), could prove more harmful than the devil that we know." </strong></span></blockquote>The former oil and gas SVP’s comments mirror those of the senior state energy official I began with. We are no closer today, than we were thirty years ago, to settling this Peculiar Disorder of Energy and Environment. The oil and gas SVP also artfully points out, that today we know our devil.<br /><br />Our devil is destructive, powerful and potentially chaotic. But our devil is known. A knee jerk reaction to financial markets and to the ongoing <strong>Peculiar Disorder of Energy and Environment</strong> by way of an energy strategy that is not fully thought through, may result in us having a new devil, one more deceitful, damaging and devious that the devil we’ve grown up with. As the oil and gas SVP stated, <em>“…we need to accurately evaluate what level of energy that the world will require for the next 25 or so years and then determine the sources of energy that will provide that requirement”.</em> You sense from this past senior leader for a major energy company the tragedy involved with energy and environment.<br /><br />The world’s population is growing; energy demand is growing; demand for consumer electronics, better healthcare, better transportation and entertainment are all growing. The world’s population will be demanding more energy in the next 25 years, and as the retired oil and gas SVP points out, there are clear limitations to many of our alternative and renewable energy resources. It is not that the limitations cannot be overcome in 25 years. They can with balanced research, technology development and innovation across all segments of the energy value stream. But new devils lurk behind the promise of renewable energy. While we may treat one environmental challenge (<em>e.g.,</em> air quality and carbon emissions) we may be creating a generation of new issues (<em>e.g.,</em> water contamination, increased hazardous waste stockpiling, land degradation or unknown human health and safety impacts via the use of uncharacterized chemicals).<br /><br /><span style="font-size:130%;"><strong>Did Our Devil Sell Us Fool’s Gold?</strong> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKxktY6UX86kbnr1Zl5vjB0bmOnkEknaLKE8aKw7jo3hvWVexwrYy8xQLv-QKNjWKQ_0xYCSY7p__7fbvZd1fNUH73JfNpqvdRVCqK5F5nsBDVeU_RMnqQzDzSuppgoNXwHne7MBA0A9rI/s1600-h/energy6.jpg"><img id="BLOGGER_PHOTO_ID_5295400964472922226" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 228px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKxktY6UX86kbnr1Zl5vjB0bmOnkEknaLKE8aKw7jo3hvWVexwrYy8xQLv-QKNjWKQ_0xYCSY7p__7fbvZd1fNUH73JfNpqvdRVCqK5F5nsBDVeU_RMnqQzDzSuppgoNXwHne7MBA0A9rI/s320/energy6.jpg" border="0" /></a><br /></span>So, has our devil been selling us fool’s gold for all these years? Amidst all of the coming to age debates on energy and environment it seems something has changed, at least in developed countries. Price signals in 2007 triggered a global decrease in demand for petroleum fuel. Conservation and energy efficiency are becoming sexy, yet again. A proliferation in new technology based energy companies is trying to stay alive in a rising sea of financial turmoil. And government is putting money where its mouth is on renewable energy and infrastructure.<br /><br />In 25 years from now it will be interesting to see if the <strong>Peculiar Disorder of Energy and Environment </strong>has resolved itself, or if the intelligent questions raised in 1970, 1980, 1990 and today are the same we ask ourselves then. Where do we get our energy from? How do we fill the energy demand and supply gap? Is clean energy and a cleaner environment an oxymoron or can we employ cleaner production methods toward new energy manufacturing to eliminate unforeseeable impacts to human health and environment? Let us hope that our devil is not replaced by a more evil and deceptive being.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span></div></div></div></div></div><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><span style="font-size:85%;"><br /></span><em><br /><span style="font-size:85%;"><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></span></em>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com1tag:blogger.com,1999:blog-9012302507271988727.post-60626452943183374662009-01-22T09:34:00.000-08:002009-01-22T09:43:55.815-08:00Building a Foundation for a Stronger Company: Hope, Unity and Purpose<div align="left"><span style="font-size:130%;"><span style="color:#000000;"><strong>Hope, Unity and Purpose.</strong> On January 20th 2009 Barack Obama was sworn into office as the 44th President of the United States speeking these articulate and carefully chosen words to millions of Americans as he defined this pivotal and transformational time in history. In listening to President Obama’s</span> </span><a href="http://news.yahoo.com/s/ap/20090120/ap_on_go_pr_wh/inauguration_obama_text"><span style="font-size:130%;color:#3333ff;">Inaugural Address</span></a>,<span style="font-size:130%;"> </span><span style="color:#000000;"><span style="font-size:130%;">and watching the reaction from those that were at the Inauguration, one could only feel a sense of hope, unity and purpose.</span><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi-D1xFNmJQRaXpEnP1-rW4UzVZvbFTU51Qrq6jfAerWvldzrrEpgeXE1Mxl2SUtRFlGcMMYzSSqEPoaUYKn7t_cXQXiL6vLmjBaz7FE_QkTq8mNW8UDa0Abc4xsQzq7kGhvKNadOgJuUW/s1600-h/hope3.bmp"><img id="BLOGGER_PHOTO_ID_5294173425901337682" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 210px; CURSOR: hand; HEIGHT: 305px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi-D1xFNmJQRaXpEnP1-rW4UzVZvbFTU51Qrq6jfAerWvldzrrEpgeXE1Mxl2SUtRFlGcMMYzSSqEPoaUYKn7t_cXQXiL6vLmjBaz7FE_QkTq8mNW8UDa0Abc4xsQzq7kGhvKNadOgJuUW/s320/hope3.bmp" border="0" /></a><br />The feeling and positive force of change could be felt, like strong and warm spring breezes overshadowing a long winter and sprouting new life. In a speech that was as eloquent as something Lincoln might have delivered, President Obama stated, <em><strong>“On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.”<br /></strong></em><br />President Obama went on to state, “<em>For everywhere we look, there is work to be done. <strong>The state of the economy calls for action, bold and swift, and we will act — not only to create new jobs, but to lay a new foundation for growth.</strong> We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost. <strong>We will harness the sun and the winds and the soil to fuel our cars and run our factories.</strong> And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. All this we will do…Our challenges may be</em><em> new. The instruments with which we meet them may be new. <strong>But those values upon which our success depends — hard work and honesty, courage and fair play, tolerance and curiosity, loyalty and patriotism — these things are old. These things are true.</strong> They have been the quiet force of progress throughout our history. <strong>What is demanded then is a return to these truths. What is required of us now is a new era of responsibility — a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task.”<br /></strong></em><br />The praise and hope President Obama delivered reminded me that we area as a nation and we as a global society are now choosing a new path of prosperity and purpose, one that is rooted in individual responsibility, strong values, and a new foundation for growth that is built upon fair play, tolerance and courage. This is truly an exciting and proud time to be an American, and a global citizen ready for the spring blossoms.<br /><br />As Corporate Citizens this holds equally true as well. For example, on January 27th-29th 2009 the</span> <a href="http://www.ahcgroup.com/"><span style="color:#3333ff;">AHC Group</span></a> <span style="color:#000000;">will be hosting more than 60 corporate leaders in Phoenix, Arizona to communicate their sense of hope, unity and <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgH_MBiJ27LEs37qQ6wmuOBZ6jkk5BUMSDjPr3nieMhBvP5Inkp0Lj0Z3LNav_T17m6wI_FGJlbWJ4q6ct5d6_WkhiIQuGniskaVTT-FC1tejIlA1f5nK77z8Yvwm4iZLiVhAUktRdwSI9c/s1600-h/hope2.jpg"><em><img id="BLOGGER_PHOTO_ID_5294173518999099442" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 183px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgH_MBiJ27LEs37qQ6wmuOBZ6jkk5BUMSDjPr3nieMhBvP5Inkp0Lj0Z3LNav_T17m6wI_FGJlbWJ4q6ct5d6_WkhiIQuGniskaVTT-FC1tejIlA1f5nK77z8Yvwm4iZLiVhAUktRdwSI9c/s320/hope2.jpg" border="0" /></em></a>purpose in 2009 and beyond. The AHC Group’s January 28th and 29th Corporate Affiliate Workshop</span> <a href="http://www.ahcgroup.com/pdfs/Agenda_Workshop_Phoenix_Jan09_3.pdf"><span style="color:#3333ff;">agenda</span></a> <span style="color:#000000;">features leaders including MASCO, Suncor Energy, DTE Energy, Sterling Planet, StrategGen, SHARP, International Paper, CH2M Hill, ARCADIS, Baxter, Shaw Industries, Agrium, Bayer, Nexen, Aerojet, ESS, Deloitte, OwensCorning and more than forty more corporate leaders that are assembling, amid this time of change and financial constraint, to continue down a path of corporate responsibility. Each of these participants have chosen hope over fear in this challenging financial time. And, each of these companies stand to gain new ground through new sustainable growth as they continue to dialog, benchmark and learn from other leaders through expertly facilitated workshops like those managed by the AHC Group.<br /><br />One of the great benefits of the AHC Group leader-to-leader workshop format is the ability for participants to learn from those that have managed large businesses through all types of challenges. An example is Dwight Bedsole, an AHC Group Senior Associate and former Director of Corporate Remediation for DuPont whose career there spanned 39 years. Reflecting on his past experience and thinking about the potential of corporate sustainability efforts, Dwight Bedsole recently noted,<br /><br /><em>“Sustainability has been around for a number of years now and is about where environmental compliance was 5 - 10 years ago…Meaning that 5-10 years ago there were companies that were stuck at environmental compliance and didn't see the value in going beyond, while a large segment of the industry clearly saw the <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0LmwtuSSnPW4sXS1RD2DXHtIl_8ERKvaxS9rPM02ARBrbcU7wcXn6tgoqS41XUVrawWe5tarE5TG0WvnQSlZ9rZHKZ5XHQMqSMcBqOc3youH9EPqngwn3DopcX9woeuAGIxhPYzrAI6Mh/s1600-h/hope5.bmp"><img id="BLOGGER_PHOTO_ID_5294173665664625362" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 240px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0LmwtuSSnPW4sXS1RD2DXHtIl_8ERKvaxS9rPM02ARBrbcU7wcXn6tgoqS41XUVrawWe5tarE5TG0WvnQSlZ9rZHKZ5XHQMqSMcBqOc3youH9EPqngwn3DopcX9woeuAGIxhPYzrAI6Mh/s320/hope5.bmp" border="0" /></a>competitive advantage of going beyond compliance. Today, going beyond is required table stakes and companies that don't realize it will not survive. So in the world of Sustainability you have the same transition taking place…there are companies that have gone beyond understanding the terminology and are making things happen and deriving shareholder value from the effort. Then there are others that complain that they don't understand the definition, etc. and are clearly not there yet. Companies that are there [Sustainability Strategy in Place] want to know what their competition is doing. Meaning, they want to benchmark their program initiatives, organizational and business strategy, and performance with similar sized companies, in similar industries and with a similar customer base. They clearly see Sustainability as competitive advantage. For this group they have heard the many stories about energy reduction, recycle, etc. and do not need to be sold on the concept and told how to organize their business units or internal teams. Rather, they want to know what competition is doing...and how they can position and differentiate themselves from their competition to yield greater terrain, reputation, moral and product advantage”<br /></em><br /><span style="font-size:85%;"><em>Dwight Bedsole, Senior Associate, AHC Group, Inc.<br />former Director Corporate Remediation, DuPont</em><br /></span><br />Dwight Bedsole summed up the competitive context and transition most companies have experienced in the past decade and more. From an AHC Group perspective we have seen market leaders evolve not just from superior products and services, but from understanding what their competition is doing, and how that fits into the context of their individual compliance and beyond compliance initiatives. Further, we have seen, for some of the most advanced companies, new growth emerge from what Dwight Bedsole calls “Sustainability as Competitive Advantage”.<br /><br />Sustainability as competitive advantage is not new, as Dwight Bedsole noted. However, many corporations continue to falter in defining and communicating what sustainability means to their customers, operations, employees, products and shareholders. We are seeing, across numerous industries and corporate organization structures, a need to identify opportunities to save energy, deploy renewable energy, modernize facilities and upgrade infrastructure. We are, simultaneously identifying a need to create corporate sustainability strategy that can tie operational, governance and risk reduction strategies together to deliver performance toward the corporate bottom line while reducing the corporate footprint.<br /><br />Many companies like SHARP, GE, Whirlpool, OwensCorning and Shaw Industries are developing “eco and green” products that enable customers to <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnUkTUaDU9CdMSkkJ90DrNc-tZOwvWsQKAG_9BsTYpZddpMM7p5t3AnWOObpNxcf_SaGCAaCbwEWKkzf_nEx5cQoPz6Pntb0iESaE9VBGjUnMx2XmpEY949rL4cygHP0XTQt-S09K4QGCV/s1600-h/Hope1.jpg"><img id="BLOGGER_PHOTO_ID_5294173815210561474" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 233px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnUkTUaDU9CdMSkkJ90DrNc-tZOwvWsQKAG_9BsTYpZddpMM7p5t3AnWOObpNxcf_SaGCAaCbwEWKkzf_nEx5cQoPz6Pntb0iESaE9VBGjUnMx2XmpEY949rL4cygHP0XTQt-S09K4QGCV/s320/Hope1.jpg" border="0" /></a>achieve their goals toward sustainability and individual responsibility to reduce their footprint on the earth. Due consideration and advances in corporate responsibility toward the supply chain are now being developed by some of the world’s largest firms. These forward thinking companies are acting upon their strong values to help reduce their customers’ footprint. The difficult tasks of purposeful growth, holding true to values and acting on individual responsibility are not just powerful themes spoken at inaugural addresses. They are the foundation by which a new economy is being formed, one that is more robust and transparent that its predecessor; and one that is responsive to the needs of a global society.<br /><br /><strong>Hope, Unity and Purpose.</strong> These are the foundational words that the future generations of corporate leaders are using to build better people, better products, better brands and better businesses in a changing world. We commend those leaders that have acted on their personal and corporate responsibility and chose to participate in the AHC Group’s January 27th-29th “Achieving Results” workshops. These select leaders are continuing to strive toward excellence as they navigate an economy and government in transition. Yours in thanks and spirited enthusiasm for the future!<br /><br /><span style="font-size:85%;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</em></span></span><span style="font-size:85%;"><em><br /></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><span style="font-size:85%;"><em><br /><br /><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </em></span><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><span style="font-size:85%;"><em> <span style="color:#000000;">and</span> </em></span><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><span style="font-size:85%;"><em> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></em></span></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-25855482088468226082009-01-15T13:35:00.000-08:002009-01-15T13:41:06.498-08:00Corporations & Consultants: Together We Are Creating a Culture of Conscious Capitalism<span style="color:#000000;"><span style="font-size:130%;"><strong>Like a Rainforest that is rich with life, the evolving green economy is full of hope and promise for renewed economic growth and prosperity. However, like a Rainforest, this new economy needs nourishment and space to grow. Finding one’s way through the dense foliage of the Rainforest can be achieved with the spirited gusto of a pioneer; or as many smart explores will employ, with the skillful guidance of an experienced scout.<br /><br />Consulting organizations are creating change among some of the world’s largest corporations and governments. With business knowledge and market intelligence gathered from dashboards that span multiple sectors, technologies and insight on leading corporate organizational strategies, consultants are helping large enterprises make sense of the evolving green economy.</strong></span><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWflX3uF98E-XVGKz72i31a628P_7j0wex_aS18qJ_9feUAQrKIDo7nGvB59xFuuNcF1cnX1D11NSy50HkcnxlKS2jaSU3reJtKQm7nJo26vNRU5S97b1NzWArLg3QFTtq8zkXmqEAnmIW/s1600-h/rainforest1.jpg"><img id="BLOGGER_PHOTO_ID_5291637722770412338" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 256px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWflX3uF98E-XVGKz72i31a628P_7j0wex_aS18qJ_9feUAQrKIDo7nGvB59xFuuNcF1cnX1D11NSy50HkcnxlKS2jaSU3reJtKQm7nJo26vNRU5S97b1NzWArLg3QFTtq8zkXmqEAnmIW/s320/rainforest1.jpg" border="0" /></a><br />There is a certain curiosity or fascination among consultants, part of their inherent alertness and awareness to the world. A skill that is honed over time, the best consultants become highly conscious to their habitat (and the habitats of others, like those of corporate and government mansions) as they begin to translate their listening and observation skills into powers of perception, perhaps even prediction.<br /><br />These skills are a valued commodity in corporate America; especially for those companies navigating their path toward “conscious capitalism” or “social response capitalism”. Social response capitalism is and evolving advanced form of capitalism by which many corporations are scouting their route to a new island of riches through a telescoping lens that includes corporate governance, social responsibility, environment excellence and product innovation as the pillars of financial growth in light of shifting consumer expectation.<br /><br />There is no existing road, rail line or shipping lane toward social response capitalism. The path is being blazed by companies new and old, domestic and global, small and large, in an attempt to transition toward a stronger and more dynamic economy. Companies including GE, Wal-Mart, Suncor Energy, Green Mountain Coffee Roasters, Boeing, Coca-Cola, IBM, Intel, Baxter and Toyota are each scouting new paths in a dense rainforest of opportunity toward social response capitalism. And, with little light guiding their way along the forest floor of the new rainforest they find themselves in, many companies seek out the council and advisement of leading business strategists and innovators that have experience navigating new trails, cautiously and expeditiously. </span><br /><span style="color:#000000;"><br />As 2009 advances, ask yourself if your company is walking blindly toward its future or charting its course with the help of an adept scout that understands all of the emerging opportunities and risks associated with social response capitalism. The best habitat for some of the best consultants is often in the thicket of uncertainty, searching for an optimal opening to make sense of their surroundings. Another way of summing up the Best Habitat for Consultants is equating it as the levels of a Rainforest: <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsJnwXLl1Jzu3KIePi4NqkP5NILTEM790N7Z9gyjl-FKMAFLz2jlrJWn3T8d5K3nYVUVDsGDu0Up5Tg44a7JlLq1r6kiVlt4VwkrYdDbPY4bHsFqVT83sbvVxL9vbhyphenhyphen7fndcY90sDCoSKV/s1600-h/rainforest2.jpg"><img id="BLOGGER_PHOTO_ID_5291637864681113202" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 214px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsJnwXLl1Jzu3KIePi4NqkP5NILTEM790N7Z9gyjl-FKMAFLz2jlrJWn3T8d5K3nYVUVDsGDu0Up5Tg44a7JlLq1r6kiVlt4VwkrYdDbPY4bHsFqVT83sbvVxL9vbhyphenhyphen7fndcY90sDCoSKV/s320/rainforest2.jpg" border="0" /></a><br /><br /><strong>1. Forest Floor</strong> - scouring for food is never easy, but the adept consultant knows that the forest floor is often where best ideas are left behind, overlooked and sometimes altogether forgotten.<br /><br /><strong>2. The Understory</strong> - this is the area where emerging breakthrough ideas and concepts emerge. They struggle and compete for attention and life, but the adept consultant can provide nourishment to the right Understory elements to add life. Success grows from passion and compassion in the competitive understory. Success requires continual open probing and articulate research…That reaches for the sun of good and useful findings.<br /><br /><strong>3. The Canopy</strong> - here the consultant thrives by having direct access to seeing organizations for their full potential - with access to senior visionary leaders and knowledge of best practices that sustain the organizations Canopy.<br /><br /><strong>4. The Emergent Layer</strong> - this is where the consultant's antenna is at full mast and the telescoping lens reaching far and wide. The consultant is best atop the emergent layer, but only after understanding how the forest floor supports the Understory and how the Understory brings new life to sustain the type of vision seen at the Emergent Layer level.<br /><br />Consultants also thrive when their habitats are:<br /><br /><strong>1. Dynamic</strong> - ever changing.<br /><br /><strong>2. Rich with growth potential</strong> - it's up to the consultant.<br /><br /><strong>3. Multi-dimensional</strong> - there is more than meets the eye.<br /><br /><strong>4. Purposeful</strong> - both in monetary promise and with regard <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOyQu_1YBB1okS-9D5xQ6vzGIGNRCbqhtQvEnK6TVMJEk2rOL_FM5V2AYsfwiRhzpVDtSB2ssUbsXTv8M9aTfwnzN5FYoFIjMBallct3tmie8SGTF4Q1ljAjTs50u7tjDkga7xdMeVVIS6/s1600-h/rainforest3.jpg"><img id="BLOGGER_PHOTO_ID_5291637984614232050" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 256px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOyQu_1YBB1okS-9D5xQ6vzGIGNRCbqhtQvEnK6TVMJEk2rOL_FM5V2AYsfwiRhzpVDtSB2ssUbsXTv8M9aTfwnzN5FYoFIjMBallct3tmie8SGTF4Q1ljAjTs50u7tjDkga7xdMeVVIS6/s320/rainforest3.jpg" border="0" /></a>to the potential to influence change, otherwise we're wasting time.<br /><br /><strong>5. Friendly</strong> - the habitat should be open to mistakes, change and understanding of risk, a non caring habitat does not nurture growth.<br /><br />As your company studies and ultimately enters the “green economy” rainforest at the forest floor level where it is dark, mysterious and overwhelming in its stature and appearance; consider tapping into one of the numerous consultants that call themselves “conscious capitalists” which can help you navigate your way toward the canopy and emergent layer toward top line business growth. Through sound market diagnostics, insightful organizational knowledge and unique perspective and experience, consultants can serve your organization as skillful scouts and adept advisors, to help your firm position for growth in the green economy.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</span></em></span><em><span style="font-size:85%;"><br /></span></em><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><em><span style="font-size:85%;"><br /><br /><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></span></em>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-4444435173880240102009-01-07T13:35:00.000-08:002009-01-07T17:28:17.165-08:00How to Position and Propel the Corporation Beyond "Random Acts of Greenness"<span style="color:#000000;"><strong><span style="font-size:130%;">Developing an Enterprise-Wide Sustainability Strategy through Internal and External Alignment of Corporate Goals is Essential to the Long-Term Performance and Success of Your “Going Green” Efforts<br /></span></strong><br />Happy New Year, and welcome to 2009! <strong>Green is great, but if it is not aligned within an enterprise wide strategy, green is just a random act. Taking “random acts of greenness” and building enterprise sustainability strategy is not a trivial matter. It requires commitment and alignment from all levels of the corporation.<br /></strong><br />The year 2008 has left a huge wake on all facets of the economy and in every industrial sector. The housing, credit and financial markets have dramatically impacted many of the corporations. In late 2008 and now into 2009, companies are continuing to cut costs amid financial worries and uncertainties in the marketplace. While the financial crisis continues to impact most corporations, there is still a need to push forward through these trying economic periods. And often, new growth and opportunity is uncovered <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOW4QJi1zGVRnrGu_aULVrZoxld1IpYCCYy91iEa9kZ2oO6LwMVsNzjVamkgZYh6EtKxqVwuh3_qIytopoCQf9T6168fiN40mSASFdmUWLq17Q9q5m35qx8t0WCMppN0YoLLgEWmqa00gP/s1600-h/random2.jpg"><img id="BLOGGER_PHOTO_ID_5288725847880873922" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 241px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOW4QJi1zGVRnrGu_aULVrZoxld1IpYCCYy91iEa9kZ2oO6LwMVsNzjVamkgZYh6EtKxqVwuh3_qIytopoCQf9T6168fiN40mSASFdmUWLq17Q9q5m35qx8t0WCMppN0YoLLgEWmqa00gP/s320/random2.jpg" border="0" /></a>during times of constraint.<br /><br />In trying economic times it becomes a priority to optimize efficiency, reduce unnecessary expenditures, and cut non-critical programs. Challenging times are also a time to rebuild strength in operations, brand, products and personnel. There is no doubt that industry is on the cusp of a profound transformation. The “go green” movement of 2008 is continuing to advance into 2009, and President-elect Obama has outlined his key priorities for economic recovery and growth which include, among other initiatives, increasing renewable energy production and rebuilding the nation's highway and education infrastructure.<br /><br />Market indicators and signals continue to show that consumers are seeking “more green” products and services, albeit at competitive prices and continued high quality and service. Existing and emerging policy and regulatory indicators show that government is advancing clean technologies, renewable energy, and also focusing on “going green” through its own operations and practices. From a corporate perspective we see many companies taking the time to slow-up amid all of these new initiatives to define what “green” and “sustainable” means to them in the context of business strategy and growth. For many companies “going green” remains synonymous with corporate communications and branding.<br /><br />Communicating corporate sustainability efforts is essential (see December 8, 2008 blog on “Communicating Your Corporate Sustainability Story”) however it needs to be grounded to measureable initiatives that are centered on an enterprise-wide corporate strategy to have the greatest impact on financial performance, and recognition as legitimate claims from the external world. Too often corporations are “going green” so quickly that they don’t fully define their goals and objectives, leading to “random acts of greenness”. These random acts get attention, and sometimes make great headlines and sound bites, but ultimately they are short lived exposure that doesn’t build <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-zIjra6R4JX3NWcgmtlcJ63Avgx6W7o67oNEIQETvHFuspJtftod6LhsR_0RDahgyq441c4mpqnUyey81-BPOBFqf0YCgcVYLA-Rl4LN9yiLy1KmKyqmTWWoLlVs1sL2erZ86_Z_iSzm_/s1600-h/random1.jpg"><img id="BLOGGER_PHOTO_ID_5288726068115973506" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 214px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-zIjra6R4JX3NWcgmtlcJ63Avgx6W7o67oNEIQETvHFuspJtftod6LhsR_0RDahgyq441c4mpqnUyey81-BPOBFqf0YCgcVYLA-Rl4LN9yiLy1KmKyqmTWWoLlVs1sL2erZ86_Z_iSzm_/s320/random1.jpg" border="0" /></a>better brands, stronger reputation or long-term shareholder value. And, in a worse case scenario, random acts of greenness backfire on the corporation as the external world sees through the glitter and buzz only to find a shell of substance and true commitment toward “going green” or business sustainability.<br /><br />Here are seven questions to ask, and to inform and enhance your organization’s sustainability efforts in the New Year:<br /><br /><strong>1. Do You Have Reactive or Proactive Strategy Development?:</strong> Would your characterize your firm’s corporate sustainability efforts as “Random Acts of Greenness?”, superficial “go green” activities caught-up or trapped in the moment, or in reaction to the severity of market conditions, but also not tied to any type of corporate strategy to yield long-term value, reputational enhancement or shareholder value? Proactive strategy development that involves senior leaders and those in charge of profit and loss of business units and line operators is required for moving beyond Random Acts of Greenness toward a comprehensive and unified sustainability strategy. The simultaneous top-down and bottom-up approach yields internal buy-in, elevation of bright ideas, and often uncovers inefficiencies.<br /><br /><strong>2. Does Your Firm Exemplify Strategic Alignment or Turf Warfare?:</strong> Who owns sustainability in your firm? Is that an issue? Turf battles over new growth initiatives often emerge and can be the detriment of a well orchestrated strategy. The reality is sustainability is a goal, objective, future state, a journey and a business principle. It is not something that should lend itself to turf disputes within the corporation. Ask yourself; Has your firm established corporate sustainability principles, values and goals? Are your sustainability principles, values and goals communicated and understood at all enterprise levels of the firm? What are the internal and external integration challenges and issues associated with your sustainability principles, values and goals?<br /><br /><strong>3. Do You Have Performance Measurement or Data Collection Jitters?:</strong> Are there existing tools to monitor sustainability performance, track performance and report out through the use of corporate sustainability metrics?<br /><br /><strong>4. Are Your Green Efforts Focused on Telling a Story or Storytelling?:</strong> No enterprise strategy for sustainable business growth is going to be 100% on the mark right out of the gate. It will require proper conditioning, support from senior management, line operators, suppliers and vendors and customers. Temper the urge to appeal to all stakeholders through storytelling as they will ultimately see through the fiction from the non-fiction. Instead focus on building the story, its characters, its theme and storyline, and then acting it out across time. This will result in the ability to tell your story versus the perception that you are only storytelling via green washing or random acts of greenness. Ask yourself; Has an individual person or team of individuals been established to conduct performance monitoring, tracking and reporting across all facets of the organization? What efforts are used to communicate performance? What tools and processes are in place to ensure continuous improvement occurs <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGvRCWAACbjOj9nV20zUCEAjUO73t-uyjvuE2frZ-KD_voE-a3eC43xYlm0qeYkieEfPZ_HCwg8gvg7gkIwoY7tDcaGsZfc0lBMAq9Za_KqZYUuJkevddVFp_GKCraP-908ytrH9sPYdrR/s1600-h/random3.jpg"><img id="BLOGGER_PHOTO_ID_5288726261872886834" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 214px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGvRCWAACbjOj9nV20zUCEAjUO73t-uyjvuE2frZ-KD_voE-a3eC43xYlm0qeYkieEfPZ_HCwg8gvg7gkIwoY7tDcaGsZfc0lBMAq9Za_KqZYUuJkevddVFp_GKCraP-908ytrH9sPYdrR/s320/random3.jpg" border="0" /></a>over time?<br /><br /><strong>5. Are You Undergoing a Cultural Transformation or in Denial?:</strong> Taking on new business principles and values cannot exist superficially. It has to transcend the corporate culture and day-to-day corporate behavior of all employees. As yourself; Has your firm established a mechanism (e.g., use of performance metrics, business unit performance goals, establishment of an executive or operating unit guiding coalition/council, or other means) to facilitate a cultural and operational integration of sustainability principles, values and goals? What can you do to facilitate cultural integration of sustainability principles, values and goals?<br /><br /><strong>6. Is Your Firm Navigating a Course of Action or Afraid to Explore Unchartered Territory?:</strong> Any new journey can be overwhelming. And, achieving business sustainability is a journey. Spending the time and necessary resources to properly plan for your journey will enable a safer, perhaps less risky, and more enjoyable experience. Ask yourself; has your firm mapped out its journey with key strategic goals, tactical objectives, and achievable milestones across time? How is this roadmap diffused throughout the organization? Do all essential employees know their role in the journey? Is the roadmap oriented and aligned toward other business goals, or are they divergent?<br /><br /><strong>7. Do You Benefit From Competitive Posturing or Still in the Dark?:</strong> Experience tells us that the smartest and most effective companies know the playing field. They benchmark with their peers and accept humility when they are not the leader and pride when they demonstrate strength. This ebb-and-flow of business performance and benchmarking is critical to building a strong sustainability initiative within your firm. Don’t catch yourself in the dark when it comes to what others are doing on business sustainability. Seek out opportunities to learn from other leaders. And don’t be afraid to fully engage as a participate in corporate sustainability benchmarking sessions. What you will find is a room of collegial peers that are experiencing the same thing as you; but also a support group and network that can convey incredible business insight and experience to provide insight to shape the design or improve the execution of, your corporate sustainability strategy. Ask yourself; Has your firm benchmarked your enterprise sustainability strategy with corporate peers to understand what they are doing, how they are doing it, and the value they derive from their efforts?<br /><br />So, in this New Year take the time to think through your business growth efforts in the context of sustainability and create a strategy, a long-term plan, for instituting green growth initiatives across your enterprise in a tempered and deliberate way. As you do so, begin to communicate internally to foster commitment, support and recognition. Also communicate externally to demonstrate how your efforts are leading to a stronger company whose sustainability efforts will yield consequential business results toward your corporate goals.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</span></em></span><br /><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><em><span style="font-size:85%;"><br /><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></span></em>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-78881760485867484862008-12-29T10:12:00.000-08:002008-12-30T07:04:49.722-08:00Tennessee Gets Something Worse than Coal in Stocking for Christmas<span style="font-size:130%;color:#000000;"><strong>The State of Tennessee Got an Unwanted Stocking Stuffer for Christmas:</strong> <strong><em>Mercury, Arsenic and Benzene</em></strong>…following a coal ash sludge spill. The land area impacted by the Tennessee Valley Authority (TVA) coal generation energy facility accident is larger than 1989 Exxon Valdez Oil Spill. Tom Kilgore, </span><a href="http://www.cnn.com/2008/US/12/29/tennessee.sludge/index.html"><span style="font-size:130%;color:#3333ff;">CEO</span></a><span style="font-size:130%;"> </span><span style="color:#000000;"><span style="font-size:130%;">of the TVA, the largest public power company in the country and responsible party for the sludge spill, vowed, <em>“This is not a time where TVA holds its head high...B<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY67MLkUwbh7ZQLak5osLEyG9SsMEl_LNndgJAxmVBlaJPtXReN9VQY3Xnbl1twCpmAX1-mMqbm1brD6jwTRI2kECOmD5aekjVYN21pqPb-0wx_UnqFFp8BmOIKaL9Grc0pSalhdB7hOL9/s1600-h/coal.jpg"><img id="BLOGGER_PHOTO_ID_5285278478844611458" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 214px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY67MLkUwbh7ZQLak5osLEyG9SsMEl_LNndgJAxmVBlaJPtXReN9VQY3Xnbl1twCpmAX1-mMqbm1brD6jwTRI2kECOmD5aekjVYN21pqPb-0wx_UnqFFp8BmOIKaL9Grc0pSalhdB7hOL9/s320/coal.jpg" border="0" /></a>ut we won't hang our head, either, because that won't get the job done. I'm here to tell you that we will clean it up, and we will clean it up right.”<br /></em></span><br /><strong>In this New Year, Let’s Make a Resolution to Stop Doing Stupid Things.</strong><br />A retaining wall, holding back 80 acres of sludge broke in</span> <a href="http://www.cnn.com/2008/US/12/23/tennessee.sludge.spill/index.html"><span style="color:#3333ff;">Tennessee</span></a> <span style="color:#000000;">this week spilling one billion gallons over 400 acres, a land area larger than the size of the 1989 Exxon Valdez oil spill. The sludge was a by-product of ash generated from coal combustion at a Tennessee Valley Authority (TVA) power generation facility in Kingston, TN. In some areas of the spill the sludge was more than four-to-six feet deep; and the amount of sludge spilled equates to more than 800 Olympic sized swimming pools.<br /><br />The full extent of the TVA waste spill including the economic, ecologic and human health impacts is being evaluated. Because fly ash contains concentrated amounts of mercury, arsenic and benzene, it could have long-term ecologic and human health impacts to the surrounding region. And, the environmental containment and cleanup costs of the TVA spill will be enormous.<br /><br />Tennessee must have been really bad this year to get such a rotten end-of-year gift. It’s worse than getting coal in your stocking. At least Tennessee could have burned the coal. Now they have a mega-contaminated site on their hands going into 2009 and likely requiring site remediation work for a decade if not longer. A root cause analysis of what caused the TVA event will be interesting. <em>Will TVA and government officials identify a slu<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHykacPOp2cVnWz_2k1PLQZfGpTTLslF7-jWwTL383ZODH7M9B7XShq0A-0z0yubKK9cxyo8XmYXjZtySfoZCj3rpjUqL0pQhoBnIzIcfeDCLx-bnqg4OjT5OFnX3i6luTSA9HGWfe_Znw/s1600-h/coal2.bmp"><img id="BLOGGER_PHOTO_ID_5285278257656689666" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 222px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHykacPOp2cVnWz_2k1PLQZfGpTTLslF7-jWwTL383ZODH7M9B7XShq0A-0z0yubKK9cxyo8XmYXjZtySfoZCj3rpjUqL0pQhoBnIzIcfeDCLx-bnqg4OjT5OFnX3i6luTSA9HGWfe_Znw/s320/coal2.bmp" border="0" /></a>rry of poor waste containment and maintenance decisions?</em> In 2003 and 2006 the TVA’s Kingston site experienced</span> <a href="http://www.wbir.com/news/local/story.aspx?storyid=72524&catid=2"><span style="color:#3333ff;">smaller failures</span></a> <span style="color:#000000;">in the dike system, at different location than where the retaining wall most recently failed, but repaired them at that time. <em>But still, was 80 acres of sludge to much for that site location? Why so much? Was the retaining wall designed to hold back that much volume and weight? Were the surrounding residents aware of the volume and composition of waste being retained in their backyard? Or will investigators find that an aging infrastructure and natural causes as the two pronged culprit?</em> Much of TVA’s facilities were built in the 1950s and prior.<br /><br /><strong><em>There is plenty of time for potential blame,</em></strong> <strong><em>however, that game is ultimately futile and wasteful</em></strong>. The situation in Tennessee is a microcosm of the US at large; and one that readily needs focused attention and action. Our infrastructure is aging. We have an enormous environmental waste challenge. We have an enormous energy challenge. These challenges are not mutually exclusive of one another. Instead, they are integrated in how we produce and use energy, how highly dependent our economy is on fossil fuels, and the waste and environmental damages associated with a fossil fuel based energy infrastructure. Even in the absence of the Tennessee coal sludge spill…<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMRT-ZLl03lp45SHqKNtyJTsIRDd6wayXl9exX42eOjXMu2_WstG1L3Gdpyj-BuiXzMpbGMHZ7Y4dGUN_ApIS-7iTpdxH5r06xrjuhGgwnhovDOTVac9-NOZSo4_TDEcxpu9ANeAyN6eEV/s1600-h/coal3.jpg"><img id="BLOGGER_PHOTO_ID_5285278672803128050" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 249px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMRT-ZLl03lp45SHqKNtyJTsIRDd6wayXl9exX42eOjXMu2_WstG1L3Gdpyj-BuiXzMpbGMHZ7Y4dGUN_ApIS-7iTpdxH5r06xrjuhGgwnhovDOTVac9-NOZSo4_TDEcxpu9ANeAyN6eEV/s320/coal3.jpg" border="0" /></a>the TVA (and Tennessee) still had an enormous one billion gallon waste issue on its hands.<br /><br />No one deserves anything worse than coal for the holiday, particularly an environmental contamination that can potentially have long-term impacts on water, ecology and economy of the 400 acre Kingston, TN site. There are plenty of Superfund and other environmentally contaminated sites across the US that need to be characterized, remedied and cleaned-up. Accidents and unintended consequences of doing business occur all the time; and often we have risk mitigation plans in place for those. But often we see unfortunate events like the TVA and Exxon Valdez spills occur that can be prevented. <strong>In 2009 let us make a commitment to reduce the risk of future environmental accidents from occurring and spend time revitalizing our economy by focusing on the health, resilience and vitality of US infrastructure.<br /></strong><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><em><span style="font-size:85%;"><br /><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></span></em>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-55611977721164161302008-12-12T08:04:00.000-08:002008-12-12T08:13:10.659-08:00The Carbon Game: Regulatory Roulette?<span style="color:#000000;"><strong><span style="font-size:130%;">Not all games of chance are created equal. In a carbon constrained world the Carbon Game is increasingly complex and potentially to a fault. The time to influence the design of the game is now. Some questions to ask are <em>“Will the House Win? Who’s the House? And How Much Do You Bet?”</em></span></strong><em><br /></em><br />Today the European Union’s 27 members</span> <a href="http://www.guardian.co.uk/environment/2008/dec/12/eerope-carbon-emissions-climate-change"><span style="color:#3333ff;">reached a compromise deal</span></a> <span style="color:#000000;">to reduce carbon emissions 20% by 2020. The compromise lays out a plan for achieving the 20% reduction, but also remains quite contentious. The costs to industry, unfair burden placed on certain sectors <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCEN2rjMEbf4qB0JVZbH9dPU03v1uQUVnyNAe9TQmv5UbOidNUusIaW97ZSzOuLW5ejPE6DNm4Gn6188_zdv8QJ0LGD1wM-6bRVWISB2IFaG3KX-8VGLGfbJqkRzRPUvKxJAYh1U2pjlcv/s1600-h/carbon2.jpg"><img id="BLOGGER_PHOTO_ID_5278936028551083298" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 278px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCEN2rjMEbf4qB0JVZbH9dPU03v1uQUVnyNAe9TQmv5UbOidNUusIaW97ZSzOuLW5ejPE6DNm4Gn6188_zdv8QJ0LGD1wM-6bRVWISB2IFaG3KX-8VGLGfbJqkRzRPUvKxJAYh1U2pjlcv/s320/carbon2.jpg" border="0" /></a>of the economy, and the true ability to achieve environmental goals without adversely affecting economic growth are some of the ongoing debates in the European Union. Also today, it is being reported that the state of California has set an aggressive greenhouse gas emissions plan set forth by the</span> <a href="http://news.bbc.co.uk/2/hi/americas/7779297.stm"><span style="color:#3333ff;">California Air Resources Board (CARB)</span></a>.<span style="color:#000000;"> The new law in California will mandate that the state reduce emissions to 1990 levels by 2020. The law includes measures to create a carbon-credit market and to bring new renewable energy generation on-line.<br /><br />The EU and CA are two examples of where the regulatory market is heading in the New Year. Like many casinos, the house always wins. In this case the “house” is the planet. The gamblers are corporations. The “pit manager” is the new carbon markets, like the</span> <a href="http://www.chicagoclimatex.com/"><span style="color:#3333ff;">Chicago Climate Exchange</span></a><span style="color:#3333ff;"> </span><span style="color:#000000;">or the</span> <a href="http://www.rggi.org/home"><span style="color:#3333ff;">Regional Greenhouse Gas Initiative (RGGI)</span></a> <span style="color:#000000;">which is the first mandatory, market-based effort in the US to reduce greenhouse gas emissions. Through RGGI, ten Northeastern and Mid-Atlantic states will cap and then reduce CO2 emissions from the power sector 10% by 2018. RGGI is enabling regional CO2 auctions, watching the “casino floor”. And, no casino is ready for operation without governing rules and regulations, e.g., states like CA or the EU.<br /><br />I purposefully use the metaphor of <em>“Regulatory Roulette”</em> - a gamble and game of chance, associated with carbon <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjw9OsmPx_fYOBZ9rdcTsQ6y_UW0NBow7PAxHP3pWWFXIU0cnxsxBZctmiWurKvwT7VfxsZWFfAXXAlVk3xurAiUhh3YB0ggj-Hp-dwNgGI4-7FFYtV6Olf984UP7nxlcfMZTOxau6PBbyN/s1600-h/roulette.jpg"><img id="BLOGGER_PHOTO_ID_5278935877510156402" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 256px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjw9OsmPx_fYOBZ9rdcTsQ6y_UW0NBow7PAxHP3pWWFXIU0cnxsxBZctmiWurKvwT7VfxsZWFfAXXAlVk3xurAiUhh3YB0ggj-Hp-dwNgGI4-7FFYtV6Olf984UP7nxlcfMZTOxau6PBbyN/s320/roulette.jpg" border="0" /></a>trading and the emerging carbon game. The current state of the carbon game is very confusing however. It is as if dozens of games, with the same general purpose, have been created. Each game has similar rules, but different strategies can be used to “win” the game. And winning the game is relative because you put your winnings into keeping the game going. It’s like being addicted to gambling when what you really need is direct intervention and to be put on a path to recovery. So, to the extent that the carbon game is only about trading and making money, it is futile and ultimately will run its course. However, to the extent the carbon game is much more complex, and involves strategies that change the course of the game over time (for example California is focusing on demand and supply side measures – focusing on enhancing energy efficiency and conservation while simultaneously incentivizing more renewable generation and</span> <a href="http://www.arb.ca.gov/newsrel/nr121108.htm"><span style="color:#3333ff;">implementing a low-carbon fuel standard</span></a><span style="color:#000000;">) then the carbon game can become much more lasting and perhaps worth the gamble.<br /><br />Like a roulette wheel the carbon game is currently seemingly a game of chance for many companies. If the ball drops into number 21 we win! Right now companies have to play a game of roulette within the rules that are being tightly bound together by pit managers and governing boards. And that is logical, and it works. But for <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7kc1vXp79jb53e5ptcUeopqoYHuq3ZL6q9XyvvDTKxpZNaV5ee2-CGhwMGHHPc6p1mLJOxw0pe7hfDsNlDUj-F8pQ6C908-5C4mzJb-Y4GbS3-3rnybJyEC0ch2-lU4TZG6UI203Vwf_v/s1600-h/carbon3.jpg"><img id="BLOGGER_PHOTO_ID_5278936148004121106" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 213px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7kc1vXp79jb53e5ptcUeopqoYHuq3ZL6q9XyvvDTKxpZNaV5ee2-CGhwMGHHPc6p1mLJOxw0pe7hfDsNlDUj-F8pQ6C908-5C4mzJb-Y4GbS3-3rnybJyEC0ch2-lU4TZG6UI203Vwf_v/s320/carbon3.jpg" border="0" /></a>the carbon game to result in a big win for the house “the planet”, the game has to evolve from a game of chance, to one that more rooted in strategy that is tied to the success and reward of the players involved. Gambling for the sake of gambling for a decade or two – to see where the ball will land is a game of chance. Gambling knowing where the ball will eventually land is creating your own destiny. It is not that the existing efforts to create carbon markets are futile, it is that we are putting perhaps to much emphasis on trading schemes that keep players playing, but don’t necessarily lead to a win for the house.<br /><br /><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</em></span><em><br /></em><a href="mailto:Mark@ahcgroup.com"><span style="color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><em><br /><br /><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </em><a href="http://www.ahcgroup.com/"><span style="color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em> <span style="color:#000000;">and</span> </em><a href="http://www.worldincbook.com/"><span style="color:#3333ff;"><em>www.worldincbook.com</em></span></a><em> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></em>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-87400358105428307542008-12-11T08:18:00.000-08:002008-12-15T11:59:17.022-08:00What Lies Beneath…The Financial Crisis?<a name="OLE_LINK1"><span style="font-size:130%;color:#000000;"><strong>A legacy of environmental liabilities, buried beneath a century of mechanization and economic prosperity, pose considerable human health and environmental risk to the current and future generation. Shortsighted financial bailouts could potentially lead to unintended consequences for millions of taxpayers today and into the future, not to mention continued and in some cases unknown impacts on our natural resources. Economic stimulus and environmental stimulus should be synonymous with one another as the new administration takes office and begins their journey toward a stronger </strong></span></a><span style="color:#000000;"><strong><span style="font-size:130%;">America.</span><br /></strong><br />The vote was 237 to 170. Yesterday, the US House of Representative passed an</span> <a href="http://money.cnn.com/2008/12/10/news/companies/auto_bailout_legislation/index.htm?postversion=2008121107"><span style="color:#3333ff;">auto bailout</span></a> <span style="color:#000000;">plan that will provide $14 billion to keep GM and Chrysler from going into bankruptcy, at least for now. Many policy makers and politicians talk of an auto industry restructuring as the best solution, and an <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjA4EQa7nUk5yYdDxfeo7c7z8QjBbTJcNBxCXeP-VnTdemaPQxKI9eZ9SnZ-0LPbPt6Zn0YpMFu4wrhuBqXDW1_Fh469GMbjXfo8223JwHFHhkg2Bi-8sXp5hokdSkFNkgB0VhJET-KJQwN/s1600-h/GM+Detroit.jpg"><img id="BLOGGER_PHOTO_ID_5278568550327265954" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 239px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjA4EQa7nUk5yYdDxfeo7c7z8QjBbTJcNBxCXeP-VnTdemaPQxKI9eZ9SnZ-0LPbPt6Zn0YpMFu4wrhuBqXDW1_Fh469GMbjXfo8223JwHFHhkg2Bi-8sXp5hokdSkFNkgB0VhJET-KJQwN/s320/GM+Detroit.jpg" border="0" /></a>immediate infusion of cash is only prolonging ultimate collapse. I begin this blog with the auto bailout not because it is timely news, but because the auto industry, the big 3, and their network of thousands of suppliers, is one of the oldest industries in America. The auto industry has, next to big oil and chemical (which have enabled the 20th and 21st century growth of the auto industry), a legacy of environmental liabilities that lay beneath the corporate mansions that have brought us an industrialized world through mechanization, modern machines and assembly lines.<br /><br /><strong><span style="font-size:130%;">A Tale of Three Knights<br /></span></strong>The auto industry was front and center in the industrial revolution of the past century, enabling economic prosperity, job growth and resulting in numerous societal benefits as a result. We can not argue that the industrial revolution and its triage of knights, auto, oil and chemical, have not led to some incredible quality of life advancements across the past 100 years. In fact these industries have seeded new advancements in materials science, chemistry, environmental science, energy storage and propulsion technologies and even health sciences. But a century of growth and advancement has not come without a social and environmental cost either.<br /><br />Environmental liabilities in the form of Brownfield’s, hazardous waste sites, chemical spills, landfills, or contaminated earth with uncharacterized chemicals and materials are the post-industrialization scars that remain to be healed. In some cases environmental liabilities were created deliberately, illegally and many of those companies and the individuals that created those ills, have been prosecuted, fined and sent to prison. In other cases (and in most cases), environmental damages were the result of our modern machines and industrialized culture, growing at a fast clip, and in the absence of corporate-and-government policies and rules that establish requirements on pollution. In addition, advancements in science and technology and greater understanding of the transport and impact of chemicals in the environment and on human health has influenced an entire generation of environmental scientists and new rulemaking on what level of chemical accumulation in our <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEYKY8jogNpXNXRAOM3IhYLd5bA1WG3yE-RB8vyuUuMniaV_grwA3WQL6ZI9ddDPuxEI7xl18wNGiMiL8BZKYLZA3Uilc2c6-WA-tgDwHDz83S73UBHRRy7NPdKySnf88JpAmhs31jbxYl/s1600-h/pollution1.jpg"><img id="BLOGGER_PHOTO_ID_5278568699873238210" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 240px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEYKY8jogNpXNXRAOM3IhYLd5bA1WG3yE-RB8vyuUuMniaV_grwA3WQL6ZI9ddDPuxEI7xl18wNGiMiL8BZKYLZA3Uilc2c6-WA-tgDwHDz83S73UBHRRy7NPdKySnf88JpAmhs31jbxYl/s320/pollution1.jpg" border="0" /></a>land, water and air is acceptable for human and ecologic health. These advancements, for example, now let us measure chemical attenuation at very low levels, over time, and at specific sites to determine if remediation technologies are having an impact on cleaning up the soil.<br /><br />The three knights, auto, oil and chemical, have been cleaning up their environmental liabilities through rigorous corporate site remediation programs for decades. And, our knights have made incredible progress. We now have a cleaner and less polluted earth due to the combined efforts of hundreds of multinational and domestic corporations that diligently characterize environmental contamination at their facilities, develop site cleanup plans, and engage with numerous stakeholders from the communities in which they operate, government, academia and environmental engineering to cleanup, redevelop and improve contaminated properties.<br /><br />But with all the progress industry has made, there remains much more to do. There are thousands of sites on the national</span> <a href="http://www.epa.gov/superfund/sites/index.htm"><span style="color:#3333ff;">Superfund</span></a> <span style="color:#000000;">registry and thousands more that need to be assessed, characterized and put on a path of remediation. And, there are still sites being discovered. Take for example the early 2008 discovery of a</span> <a href="http://abcnews.go.com/TheLaw/Housing/story?id=4138989&page=1"><span style="color:#3333ff;">WWII munitions site</span></a> <span style="color:#000000;">in Florida that left a Florida neighborhood wondering how their homes were ever built there. Or the 2007 discovery that</span> <a href="http://www.democratandchronicle.com/article/20071216/NEWS01/712160333/-1/specials35"><span style="color:#3333ff;">vapor intrusion</span></a> <span style="color:#000000;">was affecting a Victor, NY neighborhood and</span><span style="color:#3333ff;"> </span><a href="http://www.victorny.org/Data/FileManager/PageDownloads/Town/Modock/1doh_4112007update.pdf"><span style="color:#3333ff;">trichloroethane</span></a> <span style="color:#000000;">and trichloroethene being the prominent chemicals involved. By the way, the US government, through research conducted by the Department of Energy, Department of Defense and NASA has, like industry, created enormous environmental liabilities that are in the process of being cleaned up or are, in some cases, awaiting action. What lies beneath government land is just as ugly, if not uglier than what lies beneath land owned by some of the world’s most prominent brand names.<br /><br />For many domestic and multinational corporations the number one exposure they have with regard to financial risk is their environmental liabilities and legacy. Automotive, oil and gas, chemical electric utility, railroad, and other industrial machining and manufacturing companies are highly at risk to potential erosion of shareholder value or even their ability to obtain credit due to their environmental liability profile.<br /><br />Now, many firms don’t want you to know that, and I suppose one cannot blame them, particularly during a time of financial uncertainty like we are in now. So, no corporate names will be mentioned here. However, if you look at the 10-K SEC filings for 30 companies and build into that analysis a cross section of auto, chemical, oil and gas, electric utilities and other manufacturers you will discover that the environmental reserves for these 30 companies total more than $8 billion. And, on average, these 30 companies spend in excess of $1.5 billion per year to manage their <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdrUQBHtVfGU3JIE5svMewTl-0n-ntyS31sOo3cIRiFBjvXmctfeJ-TfABCcN0c4lPnYUkAmWKF36Eg4ABWA6LzoKXs9RtBIuiYS5otsUK8VlrFDHUELw8rPAsdLkeJ_WAvX21R1efwia9/s1600-h/pollution2.jpg"><img id="BLOGGER_PHOTO_ID_5278568815494391554" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 213px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdrUQBHtVfGU3JIE5svMewTl-0n-ntyS31sOo3cIRiFBjvXmctfeJ-TfABCcN0c4lPnYUkAmWKF36Eg4ABWA6LzoKXs9RtBIuiYS5otsUK8VlrFDHUELw8rPAsdLkeJ_WAvX21R1efwia9/s320/pollution2.jpg" border="0" /></a>environmental liabilities. It is not uncommon for individual companies comprising the three knights, auto, oil and chemical to spend in excess of $200 or $300 million per year on environmental liabilities and have an environmental reserve exceeding $1 billion. According to USEPA’s</span> <a href="http://www.epa.gov/superfund/accomp/numbers08.htm"><span style="color:#3333ff;">2008 Superfund National Accomplishments Summary</span></a> <span style="color:#000000;"><em>“EPA secured private party commitments of nearly $1.9 billion in Fiscal Year 2008 to fund cleanup work. Of this amount, potentially responsible parties agreed to conduct $1.575 billion in future response work, and to reimburse EPA for $232 million in past costs.”</em> Site remediation is big business, and it is growing. In addition, existing and new accounting rules from the</span> <a href="http://www.fasb.org/"><span style="color:#3333ff;">Financial Accounting Standards Board</span></a> <span style="color:#000000;">(FASB) and the</span> <a href="http://www.sec.gov/"><span style="color:#3333ff;">U.S. Securities and Exchange Commission</span></a><span style="color:#000000;"> (SEC) now require publicly traded companies to disclose their environmental liabilities and estimating the financial costs for those liabilities by what is estimable and probable. As if companies don’t have enough to think about during a financial crisis, management of environmental liabilities, accounting for those liabilities and ensuring there is money to pay for the cleanup of those liabilities is a business enterprise unto itself. So much so that some oil and chemical companies have spun off entirely separate businesses that are billion dollar enterprises that cleanup their environmental contamination.<br /><br /><strong><span style="font-size:130%;">Healing our Wounds: Stop Doing Stupid Things on Purpose</span></strong><br /><em>So, let’s revisit the auto bailout for a moment.</em> In this time of credit and financial crisis, corporate America is hurting. Product is not being sold, jobs are being cut, and some companies are near collapse which could result in a cascading affect on their suppliers and throughout the economy. It is logical that jobs and economic prosperity is the #1 issue among the new administration, policy makers and most Americans. However, let’s not forget what lies beneath the surface of this financial turmoil. A century of environmental scars pose considerable human health and environmental risk to the current and future generation. If our industrial leaders that brought us jobs, economic prosperity and quality of life go under; who pays for their legacy buried beneath our feet?<br /><br /><em>For better or for worse</em>, we are intrinsically linked to these companies more that we think. It is actually in our best interest to see them revive and survive this financial crisis, reinvent themselves, and continue to cleanup their environmental liabilities. Otherwise hundreds if not thousands of remediation sites, representing billions of dollars will fall into the fiscal responsibility of government and ultimately, taxpayers. So do we pay now, or do we pay later?<br /><br />This brings me to my final thought on this December morning. As the new administration takes office this January I encourage them and others that influence politics and governing, to make economic stimulus and environmental stimulus one in the same. We can no longer afford to be shortsighted when it comes to creating jobs and economic growth. As one corporate remediation leader once put it to me, <em>“…we [industry and government] need to stop doing stupid things on purpose”.</em> As a society we know too much. We have right the skills, technology and I believe political will to create a better world that ties economic<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOQo7lBEQSpZdmonMkpGq0JhsWFC-wFc34i1rw8L31Oak3IYOs6_om_IXic26KU8K75Gvtdt42aTQFKyvrqjV66gt3P7Hdl-06pd09oD2lVvbEkrVl3x6qD_bqs4Qug-mFFSou43J8ycAV/s1600-h/pollution3.jpg"><img id="BLOGGER_PHOTO_ID_5278568941609501954" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 319px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOQo7lBEQSpZdmonMkpGq0JhsWFC-wFc34i1rw8L31Oak3IYOs6_om_IXic26KU8K75Gvtdt42aTQFKyvrqjV66gt3P7Hdl-06pd09oD2lVvbEkrVl3x6qD_bqs4Qug-mFFSou43J8ycAV/s320/pollution3.jpg" border="0" /></a> growth with environmental concerns. We must now leverage this financial crisis as an opportunity to avoid unintended consequences, by encouraging economic stimulus that incorporates clean technologies, incentives for environmental restoration and remediation, Brownfield redevelopment and the construction and redevelopment of critical infrastructure that both improves the environment and improves human health and economic prosperity.<br /><br />So as we weigh economic stimulus packages, like the auto bailout, with jobs and “business as usual” let us also weigh in “what lies beneath” within the context of those decisions. We have to stop doing stupid things on purpose. Let us consider the following options for moving economic stimulus and environmental stimulus plans forward simultaneously:<br /><br /><strong>Greater advocacy for corporate site remediation is needed at all levels of government and within our communities.</strong> More awareness to the different and common challenges faced by industry is needed at all levels of government if we are to truly move beyond blame and toward a more economically vibrant and environmentally sound America. In many ways industry needs to come together toward this cause, and make their unique and common needs known. The complexity of site remediation and managing environmental liabilities is known by just a select few. But the impact environmental liabilities have on our urban landscape, the health of our children and environment, affects millions. Industry and government much work together to share ideas on how they remove institutional barriers to cleaning up contaminated properties and develop new models for working together.<br /><br /><strong>More education and research and development for environmental engineering and site remediation will be needed to help America cleanup and rebuild a modern and more vibrant industrial infrastructure.</strong> Technology can take us only so far. In recent years the amount of emphasis on environmental engineering programs with a focus on remediation technology innovations has waned. Corporations have made investments in new remedial technologies and educating future practitioners of environmental remediation, however their investment has been constrained. There is a need for more government investment in R&D and remedial remedies to enable government and industry to collaborate on the cleanup of contaminated properties more effectively and efficiently. Working together, industry and government can educate the workforce of the future, deploy a green collar workforce and rebuild a new industrial complex that is cleaner and more efficient than what we are working with today.<br /><br /><strong>The inclusion of sustainability principles into government and corporate efforts to clean up contaminated properties, and in the design of new infrastructure, facilities and products will be required for creating a stronger America.</strong> We cannot address contaminated properties without forethought toward why they were created in the first place. We can minimize, or completely eliminate, the creation of future contaminated properties by incorporating elements of sustainable design, operation and use into our modern industrial complex. This is needed in all facets of government and industry. To get us there any future infrastructure and economic stimulus packages need to fully consider the environmental implications of those packages, today and into the future.<br /><br />The scars of our industrial past can be healed. Poking and prodding these scars for decades on end only leaves wounds unhealed. A holistic approach toward tying economic and environmental stimulus together can be an option for economic growth and environmental protection that reduces the risk of unintended consequences and maximize the hope and promise that is cresting upon America in the form of a new administration.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</span></em></span><em><span style="font-size:85%;"><br /></span></em><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><em><span style="font-size:85%;"><br /></span></em><span style="color:#000000;"><br /><em><span style="font-size:85%;">Want to get real about the future of energy, natural resources and capitalism, go to</span></em></span><em><span style="font-size:85%;"> </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> </span></em><span style="color:#000000;"><em><span style="font-size:85%;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span><br /></em></span>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-86469782694392664362008-12-09T07:59:00.000-08:002008-12-09T08:15:56.148-08:00During Times of Economic & Environmental Uncertainty – Pick up a Book<span style="font-size:130%;color:#000000;"><strong>10 Books to Add to Your Holiday Gift or Personal Reading Lists</strong></span><br /><br /><span style="color:#000000;"><strong>We are in the midst of profound political, economic and environmental change. The complexity of operating a business amidst these challenges is greater than ever. Businesses have been challenged by the credit crisis, energy supply and price fluctuations, increased requirements for product stewardship and end-of-life management, concern over climate change and adaptation strategies, carbon mitigation and management, managing water and other resources in a natural resource constrained world, managing security and sustainable development.<br /></strong><br />These challenges are directly affecting business strategy, product development and consumer preferences for more sustainable (“green”) products and services. We see a global transformation in how corporations are responding to these challenges, while building stronger brands, stronger operations and stronger bottom lines. Whether you are a newcomer to the “green movement”, or a “true blue” early adopter, there are many new and old books that are excellent additions to your growing library. Here are ten books to add to your holiday gift list for the business sustainability guru in your life:<br /><br /><strong><em>1. Hot, Flat, and Crowded – Why we Need a Green Revolution – And How it Can Renew America</em></strong> by Thomas L. Friedman. Building upon his brand <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIQEkv5q6rb-M8hD1ba5Sug_c1-nyPfVDzA3L6mXV2UkeE2yhqToRrRYuFSguB5VSOfxv-BQ_EKbUfW96rtLIek-kdx-02SIor2Ca8XaRJF3nlKLAGHKq4C3IKsYTbvha3ikZftwZZDRKt/s1600-h/bookg.jpg"><img id="BLOGGER_PHOTO_ID_5277823075112700274" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 213px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIQEkv5q6rb-M8hD1ba5Sug_c1-nyPfVDzA3L6mXV2UkeE2yhqToRrRYuFSguB5VSOfxv-BQ_EKbUfW96rtLIek-kdx-02SIor2Ca8XaRJF3nlKLAGHKq4C3IKsYTbvha3ikZftwZZDRKt/s320/bookg.jpg" border="0" /></a>and success as an author and global strategists, Friedman now introduces us to</span> <a href="http://www.thomaslfriedman.com/bookshelf/hot-flat-and-crowded"><span style="color:#3333ff;">Hot, Flat, and Crowded</span></a> <span style="color:#000000;">examining how America can recapture its greatness in ingenuity, innovation and economic vibrancy through the creation of green collar workforce, greater investment in alternative energy and newfound respect for energy conservation and management.<br /><br /><strong><em>2. Strategies for the Green Economy</em></strong> by Joel Makower. In</span> <a href="http://www.makower.com/book.html"><span style="color:#3333ff;">Strategies for the Green Economy</span></a><span style="color:#000000;">, Joel Makower distills his more than twenty years of watching the green business scene and offers insights and inspiration for understanding and untangling the complexities and controversies of profiting in the growing green economy.<br /><br /><strong><em>3. Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage</em></strong> by Daniel C. Esty and Andrew S. Winston. In</span> <a href="http://www.eco-advantage.com/"><span style="color:#3333ff;">Green to Gold</span></a> <span style="color:#000000;">Esty and Winston bring to life the notion of a “Green Wave” that is cresting and carrying with it, some of the largest corporations in the world. Green to Gold highlight the drivers, like climate change, resource constraints in a global economy, and natural resource management issues including fisheries, forests and fauna that are impacting how corporate boardrooms are thinking about, creating policy around, and addressing these classical business challenges. </span><br /><span style="color:#000000;"><br /><strong><em>4. Outliers – The Story of Success</em></strong> by Malcolm Gladwell. The autho<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgb7-WyaqJOksJfxZJR3qkuVu0TzLtJFd-2JX46VaDibAmW3aiqnrRUYXSyv95If0GcvB0sZMQ9921jG8wuCXhIssXcUpryJNPhd1bWLF2n3n_ND1ABpAt1VLDEIzk6A2wrx2VWZts9mOHa/s1600-h/bookh.jpg"><img id="BLOGGER_PHOTO_ID_5277823143707128178" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 213px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgb7-WyaqJOksJfxZJR3qkuVu0TzLtJFd-2JX46VaDibAmW3aiqnrRUYXSyv95If0GcvB0sZMQ9921jG8wuCXhIssXcUpryJNPhd1bWLF2n3n_ND1ABpAt1VLDEIzk6A2wrx2VWZts9mOHa/s320/bookh.jpg" border="0" /></a>r of the bestselling books “Blink” and “The Tipping Point” brings us the story of</span> <a href="http://www.gladwell.com/outliers/index.html"><span style="color:#3333ff;">Outliers</span></a><span style="color:#000000;">, seemingly ordinary people that through unique circumstances in their upbringing and culture, have gone on to do great things and bring much success to their lives. The book is an easy read, enga<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6OPLeweflErI78ZBP6CV77Zs8HRGdJeV7Vrembw85mF3hl_YUKGB61llOvfxtV66eqfR6eXKA-UEeVTWSo60vhkbpqYxoNsre-Fwd9CrM_q-pXmbJH71qOCHWaNPLkccbpsqF0Dimw0qS/s1600-h/bookf.jpg"></a>ging and thoughtful. It makes one think of all of the intricate influences on a persons life, and how seemingly small things, like when you were born or where your ancestry dates back to hundreds of years ago, can have enormous impact on your success as an individual. Outliers makes me think of the evolving green revolution and the many firms that have found very early success through their own commitment to social responsibility because it is part of the fabric of their business values, philosophy and strategy. Firms like Green Mountain Coffee, Patagonia, Nike, Apple, Starbuck’s and HP exhibit elements of this “outlier” philosophy. Some continue to harness that in their business growth; while others seemingly heed to their corporate bureaucracy. I see with innovative firms, more the “outlier” philosophy still embedded in their culture.<br /><br /><strong><em>5. The Green Collar Economy: How One Solution Can Fix Our Two Biggest Problems</em></strong> by Van Jones. Published in 2008, political advisor and social activist Van Jones uses the power of storytelling in</span> <a href="http://www.vanjones.net/"><span style="color:#3333ff;">The Green Collar Economy</span></a> <span style="color:#000000;">to offer another side to our current worldly woes involving the economy and the environment. Some have referenced Jones book as a prescription for a sustainability stimulus package that addressed economic and environmental challenges in our modern society.<br /><br /><strong><em>6. Blessed Unrest: How the Largest Social Movement in History Is Restoring Grace, Justice, and Beauty to the World</em></strong> by Paul Hawken. Published in 2008,</span> <a href="http://www.blessedunrest.com/"><span style="color:#3333ff;">Blessed Unrest</span></a><span style="color:#000000;"> provides a history perspective behind the social justice movement and how modern environmental and social <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEH5RauWBaUKpv61c0BRq4aH-7SJCudSbVnZ_Sth0Y3U8ZoVRFw_N61tSDMcXvmQszzghyVx4guZrzW1XHIvw1yjJsad6u8QUnuZ7QpET0K7mYRL4Jir7NDzM27Sh7nFz12ROgBtDn8H5T/s1600-h/bookc.jpg"><img id="BLOGGER_PHOTO_ID_5277822724331980914" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 214px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEH5RauWBaUKpv61c0BRq4aH-7SJCudSbVnZ_Sth0Y3U8ZoVRFw_N61tSDMcXvmQszzghyVx4guZrzW1XHIvw1yjJsad6u8QUnuZ7QpET0K7mYRL4Jir7NDzM27Sh7nFz12ROgBtDn8H5T/s320/bookc.jpg" border="0" /></a>issues will be influenced largely from a bottoms up movement involving billions of people.<br /><br /><strong><em>7. Biomimicry: Innovation Inspired by Nature</em></strong> by Janine M. Benyus. I will confess, I have not yet read Janine Benyus’ book</span> <a href="http://www.biomimicryguild.com/janineinterview.html"><span style="color:#3333ff;">Biomimicry</span></a><span style="color:#000000;">. It was released a decade ago in 1998, yet it will be, in my view, one of these lasting books because of its profound ability to entertain, delight and inspire. Biomimicry is essentially the ability to look toward nature as the ultimate innovator. In nature we can find solutions to our own challenges with waste, better utilization of natural resources, security and sustainability. Benyus has inspired an entire generation of “Biomimics” and many in the design, engineering and building professions have used principles of biomimicry in their work since this book launched.<br /><br /><strong><em>8. Cradle to Cradle: Remaking the Way we Make Things</em></strong> by William McDonough & Michael Braungart. Another classical book (published in 2002),</span> <a href="http://www.mcdonough.com/cradle_to_cradle.htm"><span style="color:#3333ff;">Cradle to Cradle</span></a> <span style="color:#000000;">was and remains one of the launching pads for the McDonough revolution. In Cradle to Cradle McDonough and Braungart examine the flawed logic behind doing business as usual in a post-industrialized nation. They present how numerous unintended consequences have emerged from our machines and industrial society, many which can be avoided in the future and minimized with new thinking and nature inspired design.<br /><br /><strong><em>9. World Inc.: When It Comes to Solutions — Both Local and Global — Businesses Are Now More Powerful Than Government</em></strong> by Bruce Piasecki. Published in April 2007,</span> <a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.</span></a> <span style="color:#000000;">was Bruce Piasecki’s sixth book. Some of his notable other works include “Corporate Environmental Strategy: The Avalanche of Change Since Bhopal” and “In Search of Environmental Excellence: Moving Beyond Blame”. World Inc. introduces the concept of “social response product development” and “social response capitalism”. Piasecki examines how the largest economies of the world are now corporations, not nation states, and how corporations are shaping a better world through an advanced form of capitalism, social response capitalism. World Inc. also digs deeper than many similar books on the financial and money side of sustainability, offering insights into how companies are evaluated by rating agencies for superior environmental and social performance and why these indicators are transforming company values and strategies from the boardroom to the shop floor. In a time when economic crisis has taken center stage, World Inc. offers both example and solution for companies to design/innovate new products and offer society and shareholders greater return on their investment. For those interested in having a social and business history on the transformation of business as well as an “insiders” account of how large multinational firms are redirecting their products and services toward an advanced form of capitalism, World Inc. is a welcome<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWLfAPu2jcCudl_NoUftgjABgC63mPaPrtt1FSusQuI4raiHApU6gDZV3YCHJgKkfqT5Kx7sjPcilXWHJfSHi_EsdyUKuXNC0v9CR1JO4j1PBX157NGoeHMyylEj0d6RFCOqLaLzAWOO8G/s1600-h/bookc.gif"><img id="BLOGGER_PHOTO_ID_5277822634016496946" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 254px; CURSOR: hand; HEIGHT: 320px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWLfAPu2jcCudl_NoUftgjABgC63mPaPrtt1FSusQuI4raiHApU6gDZV3YCHJgKkfqT5Kx7sjPcilXWHJfSHi_EsdyUKuXNC0v9CR1JO4j1PBX157NGoeHMyylEj0d6RFCOqLaLzAWOO8G/s320/bookc.gif" border="0" /></a>d read.<br /><br /><strong><em>10. Small is Beautiful: Economics as if People Mattered</em></strong> by E.F. Schumacher. First published in 1973, the book Small is Beautiful is a collection of essays by British economist E.F. Schumacher. The book was published on the eve of the 1973 energy crisis as well as the emergence of globalization. Schumacher frames the modern economy (some forty years ago) as unsustainable based upon its pricing, valuation and consumptive use of natural resources. The</span> <a href="http://www.smallisbeautiful.org/about.html"><span style="color:#3333ff;">E.F. Schumacher Society</span></a> <span style="color:#000000;">was founded in 1980. Its programs demonstrate that both social and environmental sustainability can be achieved by applying the values of human-scale communities and respect for the natural environment to economic issues. Small is Beautiful is a great addition to anyone’s library.<br /><br />The ten selections above are great resources for providing context, insight and new ideas in this time of tumultuous challenge and change. We hope you enjoy these selections this holiday season.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><em><span style="font-size:85%;"><br /><br /><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to </span></span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and </span></span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></span></em>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-74701253843181973372008-12-08T09:04:00.000-08:002008-12-09T17:56:57.128-08:00Communicating Your Corporate Sustainability Story & Strategy<span style="font-size:130%;"><span style="color:#000000;"><strong>As in Politics - Creating a Vision of the Future through Words also Matters in Corporate Communications...</strong></span><br /><span style="color:#000000;"></span><br /></span><span style="color:#000000;"><span style="font-size:130%;">According to a recent 2008 survey by KPMG, annual reports on Corporate Social Responsibility (CSR) are on the rise, <em>“…Corporate responsibility reporting has gone mainstream - nearly 80 percent of the largest 250 companies worldwide issued reports, up from about 50 percent in 2005.” </em>The reputational value surrounding disclosure on corporate ethics and economics were among the top drivers referenced by KPMG that are influencing more and more companies to publicly report out on key CSR indicators. </span><strong><span style="font-size:130%;">In the mad rush to publish CSR content, how effective are companies at communicating themselves to their stakeholders? How can companies differentiate sustainability as a business and societal directive? And, how do they communicate clarity when there is conjecture about the future?</span><br /><br /></strong>The eloquence by which President-elect Barack Obama speaks of his vision for our nation is, in my personal view, one of the defining and winning elements of his campaign. Trying to communicate such vision to 100 million registered voter<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKkRT5OhkvYtun7KEqM9jUytDUfsbCDD5LYEB5LuG7Sk5UgC_webEHOzt1j41Q1Muu33_li2IjWn1DtloYPfq9EI1bymZGmCMUMwyhrU4ZAJWQ6sGggy7Vbd73xtUnzKqjvenFeNS9AgD5/s1600-h/communication+7.jpg"><img id="BLOGGER_PHOTO_ID_5277469687581396834" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 293px; CURSOR: hand; HEIGHT: 224px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKkRT5OhkvYtun7KEqM9jUytDUfsbCDD5LYEB5LuG7Sk5UgC_webEHOzt1j41Q1Muu33_li2IjWn1DtloYPfq9EI1bymZGmCMUMwyhrU4ZAJWQ6sGggy7Vbd73xtUnzKqjvenFeNS9AgD5/s320/communication+7.jpg" border="0" /></a>s, through nothing more than the delivery of words, is an incredible skill and nothing shy of amazing. President Obama’s</span> <a href="http://albany.bizjournals.com/albany/stories/2008/11/03/daily28.html"><span style="color:#3333ff;">victory speech</span></a> <span style="color:#000000;">was exemplified how and why words matter.</span> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnfTYITnOuL3AFfFsDZM3d2F0q0L1_Yg4fIdcJxMA8CfOzRqjJmVaznp7m9BkZNKBW1fZm7Ai6ZchIfthLcfLIX5_YD7eiDlHBP7iY7_tVBpo9CKTKbRkPOE0uEUGYCu0saTSe9v26sOCu/s1600-h/communications6.jpg"></a><br /><br /><span style="color:#000000;">There are some basic principles and key lessons in communication that we can draw from the leadership of President Obama and his ability to communicate complicated and often unresolved issues to diverse audiences. These key lessons on are valuable for communicating complex information like a corporate sustainability strategy, which is often not well defined, not yet rooted, and in most cases, a vision or framework for business strategy and governance.<br /><br /><em><strong>Key Lessons for Communicating Your Sustainability Strategy</strong></em><br /><br />1. Create Trust by Giving Praise<br />2. Be Articulate and Succinct<br />3. Be Visionary yet Grounded in Tangible Example and Application<br />4. Show Emphasis but not Exaggeration<br />5. Transcend All Stakeholders with Common Themes and Examples<br />6. Be Realistic on the Present and Future<br />7. Demonstrate Force and Grace Simultaneously<br />8. Don’t Overwhelm Your Audience<br />9. Create Enthusiasm<br />10. Leave a Door Open for Others to Join<br /><br />I am sure there are other basic principles one can draw from President-elect Obama’s oratory and speech writing skills, however, these ten principles are directly applicable to corporate communications and disclosure on sustainability.<br /><br />As I think about some of the more successful <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV83CQ0aEIs1desa1o6pfe9aZSWu46bUXrNHQKbB2CBelob8Z78dP0GaEH7ntO2m8s8hVCuOUb9VC1w_VB5MS3n3yC8VL0A8CTANYA5SKk8xwqFsX_felFLyzD4vHJmOA_fSQAR8SGQgZt/s1600-h/communicate.jpg"><img id="BLOGGER_PHOTO_ID_5277468882815197026" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 264px; CURSOR: hand; HEIGHT: 170px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV83CQ0aEIs1desa1o6pfe9aZSWu46bUXrNHQKbB2CBelob8Z78dP0GaEH7ntO2m8s8hVCuOUb9VC1w_VB5MS3n3yC8VL0A8CTANYA5SKk8xwqFsX_felFLyzD4vHJmOA_fSQAR8SGQgZt/s320/communicate.jpg" border="0" /></a>communicators of business sustainability I see these ten principles in their blogs, annual reports, speeches and presentations and press releases. The ten principles are often tied together to tell a story, one that is rooted in both the emotional-and-tactical side of business. I often see sustainability communications that are so mechanical that the essence and richness of what is being communicated is lost in a sea of data and numbers, non-descript and non-personal quotes, or language that is unrealistic with regard to what is being communicated. There is a certain bravado that garners attention from investors and the media, but to much can send many analysts running for the hills.<br /><br />Constantly solid purveyors of the ten principles identified above for the purposes of telling their sustainability story have been:</span><br /><br /><a href="http://www.campbellsoupcompany.com/csr/extra_stakeholder.asp"><span style="color:#3333ff;">Campbell Soup Company</span></a> <span style="color:#000000;"><em><strong>“Nourishing Peoples Lives”</strong></em> is one of the themes of their 2008 corporate social responsibility report. Campbell’s conjures up immediate emotion of home and warmth, thinking back to a cold winter day, just in from a two-hour cross-country skiing excursion across barren land, or building the indestructible snow fort to ward off neighborhood trespassers. Campbell’s ability to leverage their brand to show common themes across all stakeholders in their social responsibility report is one aspect of good communications. They understand that consumers are concerned about <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiWrJpE2LM9dKiwVCARC05YF4RpreSXdEHtDkH_kS5pm_Q8iGcXFQFuSGhmutUgdvG9qmNkxnSRaRO3JG1Y4T7M4FHf8cvMQWVvvhF5eSUYr8x-S-ysiJBDXFpKi5UkdAhu2HKSDQXUjTZ/s1600-h/communicate2.jpg"><img id="BLOGGER_PHOTO_ID_5277469020713932386" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 300px; CURSOR: hand; HEIGHT: 210px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiWrJpE2LM9dKiwVCARC05YF4RpreSXdEHtDkH_kS5pm_Q8iGcXFQFuSGhmutUgdvG9qmNkxnSRaRO3JG1Y4T7M4FHf8cvMQWVvvhF5eSUYr8x-S-ysiJBDXFpKi5UkdAhu2HKSDQXUjTZ/s320/communicate2.jpg" border="0" /></a>healthy foods, where foods are sources, how nutritious their diets are and responsibility in advertising through disclosure in product labeling and the use of certain commercials targeted to children. Food and beverage companies like Campbell’s elicit very strong consumer emotion and ties. It is essential for firms that have such immediate impact on the daily lives of consumers to communicate their sustainability story using the ten principles of good communication.</span><br /><br /><a href="http://www.greenmountaincoffee.com/GMCRContent/HTMLFiles/gmcr_csr_full.pdf"><span style="color:#3333ff;">Green Mountain Coffee Roasters</span></a> <span style="color:#000000;"><em><strong>“From Understanding to Action”</strong></em> Corporate Social Responsibility Report, Fiscal Year 2005. This report by GMCR achieves the ten principles. The first words in the report are <em>“For 25 years, we have been on a deliberate journey to create and sustain a values-driven company that views profit as a means to achieve a higher purpose.” </em>Like Patagonia, GMCR has a foundation with a passionate and articulate executive. Bob Stiller, founder and President of GMCR says <em>“Understanding the realities of people’s lives and the conditions of our shared world motivates us and helps guide our decisions. When people understand underlying issues, I believe they will take action. That is why we have sent more than 20% of our full-time employees on trips to coffee-farming communities. Whenever I visit with coffee farmers, I am touched by their hard work, perseverance and pride in producing high-quality coffee. Seeing first-hand some of the challenges and complexities integral to the specialty coffee industry inspires us to move toward a vision of long-term sustainability for everyone in our supply chain.”</em> You get an immediate sense of how personal GMCR’s sustainability and social responsibility efforts are to their success as a company. GMCR’s views its suppliers not as commodity providers, but as an integral part of the company’s future and vice versa. This humanistic and emotional connection to their products and the communities in which they source products from enables GMCR to have a realistic notion of their business present and future.</span><br /><br /><a href="http://www.marriott.com/marriott.mi?page=environmentalInitiatives"><span style="color:#3333ff;">Marriott International</span></a> <span style="color:#000000;"><strong><em>“Spirit to Preserve”</em></strong> initiative is changing the culture at this leading property development, management and lodging company. With more than 3,000 properties in the US and abroad Marriot International has a large social and environmental footprint. Their “Spirit to Preserve” initiative includes green building development, greening of their supply chain, protecting the rainforest, resource conservation (through water, waste and energy reductions) and employee and guest engagement in Marriott’s sustainability efforts. Marriott’s</span> <a href="http://www.marriott.com/marriott.mi?page=green_stories"><span style="color:#3333ff;">Green Stories</span></a> <span style="color:#000000;">serve to communicate how they are transforming the built environment, enabling more sustainable conferences and meetings with the use of greener products and facilities, and instilling a new culture of conservation into their business model through tangible example.<br /></span><br /><a href="http://www.patagonia.com/web/us/patagonia.go?assetid=23429"><span style="color:#3333ff;">Patagonia</span></a> <span style="color:#000000;"><strong><em>“Leading the Examined Life”</em></strong> communications and Yvon Chouinard (Patagonia's founder) ability to be articulate, create enthusiasm and personal emotion to his products and his firms purpose as a company. In a creative disclosure of their environmental footprint Patagonia has created</span> <a href="http://www.patagonia.com/web/us/footprint/index.jsp"><span style="color:#3333ff;">The Footprint Chronicles</span></a><span style="color:#000000;"> <span style="color:#000000;">to help stakehold<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdKEsgwBGiSmPJ08tOLh7ecBGRx3UmaLJJx9iqONj7sL5b7SffLd-GNcNvMwLBXm1BIaPZrozsVLTjGAHddsckk3BFuTrLTCBUbG_g20CDiMUUtDV5OmNb9b21Ng8wHqY4A9droqtqFr_P/s1600-h/communications+4.jpg"><img id="BLOGGER_PHOTO_ID_5277469161377788514" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 220px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdKEsgwBGiSmPJ08tOLh7ecBGRx3UmaLJJx9iqONj7sL5b7SffLd-GNcNvMwLBXm1BIaPZrozsVLTjGAHddsckk3BFuTrLTCBUbG_g20CDiMUUtDV5OmNb9b21Ng8wHqY4A9droqtqFr_P/s320/communications+4.jpg" border="0" /></a>ers track (and offer input on) the company’s environmental impact of specific products from design through delivery. The Footprint Chronicles examines “the good and the bad” with Patagonia offering their input on why their product is bad for the environment. This honest disclosure shows the humility of Patagonia and how they are grounded in reality.<br /><br /></span>As more companies publicly disclose their corporate social responsibility and sustainability efforts in annual reports, press releases, investor presentations and marketing collateral it will be crucial for good communications. There is a risk of under-and-over stating your sustainability story to the public. Increasingly the general public and all stakeholders are becoming more educated on best practices in corporate governance, social responsibility, environmental management, and sustainable business models and practices. Coherent, clear and concise communications are essential to quality reporting on CSR. In addition, it is equally important to have sustainability communications that like Patagonia, Green Mountain Coffee, Campbell’s Soup and Marriott International, are consistent with the vision and commitment of senior management and also tell a story. Stakeholders are more forgiving of communications that have a face and a personality than those that are seemingly transparent but with no real connection to the vision, policies and practices of the disclosing firm.<br />Remember also that communicating sustainability should be your story; not your competitors or what you feel stakeholders want to hear. Business sustainability is about not only effectively managing your risk and your future, but also your ability to connect with the present through clear communications.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc</span></em></span><em><span style="font-size:85%;">.<br /></span></em><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><span style="font-size:85%;"><br /></span><em><br /><span style="font-size:85%;color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></span></em>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-45833861676426373142008-07-10T10:34:00.000-07:002008-12-11T00:47:08.646-08:00Free Market OR Oil Market Economy?<span style="color:#000000;"><strong><span style="font-size:130%;">Conservatively, greater than 36% of the revenue and 35% of the profits of the Top 100 Global companies as ranked by FORTUNE Magazine is based on the production and use of OIL…A more advanced free market economy is being shaped by global corporations </span><span style="font-size:130%;">embracing Social Response Capitalism, and a deliberate shift from a petro-based economy to a more diversified and sustainable economy.</span></strong><span style="font-size:130%;"><br /></span><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0_DfhySp25ajaYdBEHNNqbqEOyFAyS2ZT7bdT-UvGBVsDZzLgjxgdV_GvqRGLLcRU7tREPJ91VQWqtRC6s-MDVijJKGths6xTzDYO_bPT1uQLjL6leaGwNIJU2FBSoGSm6qKsZRTgAd2A/s1600-h/economy5.jpg"><span style="font-size:130%;"><img id="BLOGGER_PHOTO_ID_5221441430295950258" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" height="289" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0_DfhySp25ajaYdBEHNNqbqEOyFAyS2ZT7bdT-UvGBVsDZzLgjxgdV_GvqRGLLcRU7tREPJ91VQWqtRC6s-MDVijJKGths6xTzDYO_bPT1uQLjL6leaGwNIJU2FBSoGSm6qKsZRTgAd2A/s320/economy5.jpg" width="291" border="0" /></span></a>Fortune Magazine recently published the latest</span><span style="color:#3333ff;"> </span><a href="http://money.cnn.com/magazines/fortune/fortune500/2008/index.html"><span style="color:#3333ff;">annual ranking</span></a> <span style="color:#000000;">of the World’s largest corporations. With greater scrutiny on the rising cost of energy, and mounting global concern over climate change with the G8 nations recently pledging to “</span><a href="http://www.nytimes.com/2008/07/10/science/earth/10climate.html?em&ex=1215748800&en=bacbdef3bed315e9&ei=5087%0A"><span style="color:#3333ff;">move toward a carbon-free society</span></a><span style="color:#000000;">”, it will be interesting to see which American and Global companies remain on Fortune’s list five, ten and twenty years from now.<br /><br /><strong>Consider this…as of July 10, 2008 greater than 36% of the revenue and 35% of the profits of the Top 100 Global companies as ranked by Fortune Magazine is based on the production and use of oil.</strong> This conservative accounting captures the following:<br /><br /><em><strong>Automotive manufacturing companies</strong></em> (<em>Toyota, GM, Daimler, Ford, Volkswagen, Honda, Nissan, Fiat, Peugeot, BMW</em>) in the Top 100 global companies account for 12.4% of the revenues and 0.6% of the profits (for the total Top 100 global companies).<br /><br /><em><strong>Oil and refining companies</strong></em> (<em>Exxon Mobil, Shell, BP, Chevron, ConocoPhillips, China National Petroleum, ENI, Pemex, Valero, SK Holdings, Lukoil, Petronas, Repsol YPF, Total, Petrobras</em>) in the Top 100 global companies account for 20.5% of the revenue and 29% of the profits (for the total Top 100 global companies).<br /><br /><em><strong>Other energy and utilities companies</strong></em> (<em>State Grid, Gazprom, E.ON, Suez</em>) in the Top 100 account for 3.4% of the revenue and 5.5% of the profits (for the total Top 100 global companies). Note: I excluded Electricite de France from this calculation due to their large portfolio of nuclear, hydro and non-petroleum based energy generation assets.<br /><br />Now, many of these firms are leading efforts to diversify their product portfolio, adding renewable energy generation to their production mix or manufacturing more fuel-efficient, alternative fueled vehicles. However, suffice it to say the starting gun on the global race to a more <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibFlgMHdO12LiE2MdhzJZ9Ps7SoZJQRgfIbTsbdZpffIJgwcibbFn3RsceGi1g5HPMOl5Q3pNQ-f4MQsDXMXYHD-rxB_VKCRmIZ0e18ehFGrhYt5uqdqCFMEm-4VP-VO8CdCLm5_RHmXKE/s1600-h/economy2.jpg"><img id="BLOGGER_PHOTO_ID_5221441880855075922" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibFlgMHdO12LiE2MdhzJZ9Ps7SoZJQRgfIbTsbdZpffIJgwcibbFn3RsceGi1g5HPMOl5Q3pNQ-f4MQsDXMXYHD-rxB_VKCRmIZ0e18ehFGrhYt5uqdqCFMEm-4VP-VO8CdCLm5_RHmXKE/s320/economy2.jpg" border="0" /></a>sustainable future has been fired and some companies are leading the pack while others are lagging behind. This proverbial race, in this writers view, will dramatically reduce the amount of future revenue and profits derived from our existing petroleum dominated economy in years to come shifting the focus from oil to other forms of energy. </span><br /><br /><div><div><div><div><span style="color:#000000;">This shift may prove to be transformational with regard to our reliance on oil for the production of goods and services using oil for energy production, transportation fuels, food production, plastics and medicines. It may also prove to be transformational with regard to the economy and environment – as new technologies come on line and energy production becomes more diverse, so to will the economy and capital markets. We’ve locked ourselves into a one-dimensional view of living with oil being the dominant economic and societal force shaping our industrialized world. The new economy before us will look and feel much different, as the last drops of oil are replaced with kWh’s of electricity, cleaner fuels and alternative modes of transport, production of energy and goods and services.<br /><br />Future revenues and profits for some of the world’s oil-based corporate leaders may actually <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh24FyOHdTpD4D_SU6oe3stO0zDyAg-CXlNm_1SgFs2hCaZuwdmg8DSwmTDKoR4MeVH4J7crL3OubOILeHZxFGN2Nfpd8hMnlfLjid29EVOII5u3g0ofVmk3_EFXc_tVQtzRDmQJJRkGCmb/s1600-h/economy1.jpg"><img id="BLOGGER_PHOTO_ID_5221441537039489250" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh24FyOHdTpD4D_SU6oe3stO0zDyAg-CXlNm_1SgFs2hCaZuwdmg8DSwmTDKoR4MeVH4J7crL3OubOILeHZxFGN2Nfpd8hMnlfLjid29EVOII5u3g0ofVmk3_EFXc_tVQtzRDmQJJRkGCmb/s320/economy1.jpg" border="0" /></a>increase in years to come as petroleum prices remain steady or go higher. However, the corporations that have become global behemoths from an oil dominated economy are at the peak of their civilization. For those that are not careful on how they forecast the future, they may, like the dinosaurs, face a most sudden death. For those corporations that are more evolved, market adaptation and transformation are likely paths that they will lead in years to come. This transformation is underway at some corporations: for example Toyota with hybrid-electric vehicles, Suez with 15% renewable energy generation, BP with renewable energy generation and biofuel production, Nissan with electric vehicle commitments for 2012.<br /><br />In the book “</span><a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.</span></a><span style="color:#3333ff;">”</span><span style="color:#000000;"> author Bruce Piasecki introduced the concept of <strong>“Social Response Capitalism”</strong>. Piasecki’s forecast shows that corporations are increasingly taking on new roles not only in the production of goods and services but also the delivery of social needs throughout the world, often superseding the impact governments are having. The role of the modern corporation has and continues to transform, shaped by a free market economy but also by the global communities in which so many global corporations now touch and influence daily. In Friedman’s flat world the modern corporation has enormous power and influence, but only as far as consumers and government continue to value its products and services. The expectation for corporations in the past century was delivery of quality products at a fair competitive price. Today the expectation from society upon corporations reaches far beyond just the price and performance of products. Consumers are seeking corporations that are responsible to the communities they work in, to the natural environment, to future generations and to their employees. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVX9JirAPcdXwjf0T_yvA1xKYhem2s4sqPqkkYr7Sc6ENcRp46cgRsMU1EB6JQQIdrg9SYBt9NYp5br5Krpx-TQfggUD_ZLuMZokKFLmY91QxkNejisEkUjxq4gI0GRgljiCt4mDKXGXCM/s1600-h/economy4.jpg"><img id="BLOGGER_PHOTO_ID_5221441711404720210" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVX9JirAPcdXwjf0T_yvA1xKYhem2s4sqPqkkYr7Sc6ENcRp46cgRsMU1EB6JQQIdrg9SYBt9NYp5br5Krpx-TQfggUD_ZLuMZokKFLmY91QxkNejisEkUjxq4gI0GRgljiCt4mDKXGXCM/s320/economy4.jpg" border="0" /></a><br /><br />In his book “World Inc.” Piasecki notes, <em>“After all the complex societal and business mergers in firms and their supply chains since World War II, the "seven sisters" -- the world's largest petroleum exploration, refining and delivery companies -- have become the big five: ExxonMobil, ConocoPhillips, Chevron, BP, and Shell. Each of these world-spanning oil giants is remarkably different, yet many people still think all oil companies are generically bad, placing aggressive corporate tactics of ExxonMobil on the same level as the social change-based ambitions of Suncor Energy, BP and Shell…The question at the heart of the debate on Social Response capitalism, at the center of World Inc., is really quite simple: If competition and the desire to win are such an inherent part of our nature, can we remake ourselves and our firms -- yet again -- to better consider social need?...Projections for the success of a company are, by their very nature and the constant shifting of the marketplace, uncertain. What is certain is that we will eventually run out of oil and gas as a fuel supply to heat our homes, drive our cars, and sustain our industrial output as we know it. This is a fact. The end of this age of oil is an increasing topic of debate and concern in the boardrooms of the largest oil, automotive, consumer product, and agricultural companies.”<br /></em><br />Piasecki goes on to define</span> <a href="http://www.csrwire.com/pdf/WorldInc_Excerpt.pdf"><span style="color:#3333ff;">Social Response Capitalism</span></a> <span style="color:#000000;">noting, <em>“Social Response capitalism happens when:<br /><br />1. Companies restructure their operations to actively shape consumer demand by creating new products that bridge the gap between traditional expectations of performance and price and social impacts on the larger world.<br /><br />2. Often this gap has been ignored in the past because it wasn't considered good business to worry about such "externalities."<br /><br />3. However, today, these externalities are impinging upon the long-term viability of entire product lines that have served as the basis for our industrial economy.<br /><br />4. While past efforts at becoming a good corporate citizen often focused on production techniques and efficiency, the latest twist is making better products themselves, products that respond to legitimate emerging social pressures or needs, not manufactured social needs that just spawn irresponsible mass consumerism.<br /><br />5. Examples of these new social pressures include a drive to eliminate toxic chemicals in products of everyday use, a new corporate emphasis on the reuse and endurance of its products, and some early examples of pure product innovation to issues such as climate change.”<br /></em><br /><strong>A fundamental shift in how consumers value corporations, and how corporations view their place in the world is upon us. As the price of energy, based upon an oil dominated economy increases; and as consumer and corporate tension over the economy, environment and societal needs collide; a cascading effect will begin to shift the influence of the oil economy to a more diversified and ultimately a stronger economy globally. This shift will result in tangible benefits for consumers, shareholders and the natural environment alike.</strong><br /><br /><strong><span style="font-size:130%;">Will the composition of the Global 500 look fundamentally different in 2015, 2020, 2030 than it does today? Which firms do you believe will be the dinosaurs and which ones will evolve to compete in a more complex and responsive world?</span></strong><br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</span></em></span><span style="font-size:85%;"><br /></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><span style="font-size:85%;"><br /></span><em><br /><span style="font-size:85%;color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></span></em></div></div></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-50710783786784829552008-06-25T13:56:00.000-07:002008-12-11T00:47:09.456-08:00Addressing National Security through Social Response Capitalism and Business Sustainability<strong><span style="font-size:130%;"><span style="color:#000000;">A new report by the National Intelligence Council (NIC) points to</span> </span></strong><a href="http://online.wsj.com/article/SB121439562868003087.html?mod=googlenews_wsj"><span style="font-size:130%;color:#3333ff;"><strong>climate change as a future US security threat</strong></span></a><span style="color:#000000;"><strong><span style="font-size:130%;">.</span><br /></strong><br />On June 25, 2008 Thomas Fingar, the deputy director of national intelligence for analysis and chairman of the National Intelligence Council spoke before the</span> <a href="http://online.wsj.com/public/resources/documents/FingarSFR.GCC06252008.pdf"><span style="color:#3333ff;">House Permanent Select Committee on Intelligence and House Select Committee on Energy Independence and Global Warming</span></a>. <span style="color:#000000;">Fingar noted: <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYl5WERVTjhy-FFZmmf0vNJUYmYgt8tZANj1K3id_zHwjf_C39my9jSsgBJBIXR4QG5bdGBXpPZpbm654IptsQOadYoqBc4wjWot-pYZHXMd1IyLJM6N__UmoRUy6hzlsxV3RoF-bNW5nG/s1600-h/security1.jpg"><img id="BLOGGER_PHOTO_ID_5215927801865761906" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" height="199" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYl5WERVTjhy-FFZmmf0vNJUYmYgt8tZANj1K3id_zHwjf_C39my9jSsgBJBIXR4QG5bdGBXpPZpbm654IptsQOadYoqBc4wjWot-pYZHXMd1IyLJM6N__UmoRUy6hzlsxV3RoF-bNW5nG/s320/security1.jpg" width="305" border="0" /></a><br /><br /><em>“From a national security perspective, climate change has the potential to affect lives (for example, through food and water shortages, increased health problems including the spread of disease, and increased potential for conflict), property (for example through ground subsidence, flooding, coastal erosion, and extreme weather events), and other security interests. The United States depends on a smooth-functioning international system ensuring the flow of trade and market access to critical raw materials such as oil and gas, and security for its allies and partners. Climate change and climate change policies could affect all of these—domestic stability in a number of key states, the opening of new sea lanes and access to raw materials, and the global economy more broadly—with significant geopolitical consequences. In addition, anticipated impacts to the Homeland—including possible increases in the severity of storms in the Gulf, increased demand for energy resources, disruptions in US and Arctic infrastructure, and increases in immigration from resource-scarce regions of the world—are expected to be costly.”<br /></em><br />Sorry to begin this blog with a lengthy quote, however the remarks by Thomas Fingar on the potential security risk implications of global climate change are noteworthy and warrant a moment of pause, reflection and hopefully some further perspective. Fingar further points out… <em>“Government, business, and public efforts to develop mitigation and adaptation strategies to deal with climate change—from policies to reduce greenhouse gasses to plans to reduce exposure to climate change or capitalize on potential impacts—may affect US national security interests even more than the physical impacts of climate change itself.”<br /></em><br /><strong><em>First, a Brief Pause and Reflection</em></strong><br />Government, corporations, politicians and citizens often accentuate, debate, and glamorize the environmental impacts of global climate change. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8a-qS7A9_fmZZ_8lMUF8jsyp9njSGhfY165JVlmf4JaSFL9dEzvujsNfGoVLK5ghmkKAHn2usBfb26BNRPRPnkqt5HljC2PfAqws5x63BvCHFM1idfe6MAaCoT1EDu7M1PpJAt0lbJafd/s1600-h/security2.jpg"><img id="BLOGGER_PHOTO_ID_5215927946084986498" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8a-qS7A9_fmZZ_8lMUF8jsyp9njSGhfY165JVlmf4JaSFL9dEzvujsNfGoVLK5ghmkKAHn2usBfb26BNRPRPnkqt5HljC2PfAqws5x63BvCHFM1idfe6MAaCoT1EDu7M1PpJAt0lbJafd/s320/security2.jpg" border="0" /></a>However few characterize the other critical influences climate change poses to our economic, industrial, agricultural, transportation and infrastructure systems. The concept of sustainability is inclusive of environmental requirements but also the economic, societal needs and governance objectives of corporations, government and society at large as well. A great deal of attention has been paid, from automakers to lobbyists on The Hill to non-government organization groups, to the environmental damages incurred from climate change and modern industry. It is actually a good thing to see the environment “getting its due”, but it is of great importance, some might say of national security, to keep a balanced and holistic view of sustainability, particularly in a post-9/11 world. In the absence of any federal policy direction on sustainability, most governments and corporations are left to their own determination of what the concept means to them, and how they should ultimately address issues like climate change. Some firms view climate change as opportunistic, others as a cost of doing business, still yet others view it as a liability to be negotiated, mitigated or marginalized. Regardless of where you or your firm is on the sustainability continuum (one end being in favor and in high pursuit – the other end being clouded, overwhelmed or unconcerned) there are options for you to consider. First, sustainability in not only about the environment, it’s also about what’s the right thing to do for social needs and economic prosperity. Secondly, sustainability is just as much about environmental protection and <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJbOyNAza2Nq9uUoXJh1ecGBiyhnVGHrJ0wvcxxz1kXKu7S98FxoYMnA-1oLfV61c83pNi0K22FqUVNA6IBMuBifw1G9RO6mWC0C_hF2yy5_IkFKGyaM6xLwG6C5skIwLuz3kJyu63sDyf/s1600-h/security5.jpg"><img id="BLOGGER_PHOTO_ID_5215928077955127330" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJbOyNAza2Nq9uUoXJh1ecGBiyhnVGHrJ0wvcxxz1kXKu7S98FxoYMnA-1oLfV61c83pNi0K22FqUVNA6IBMuBifw1G9RO6mWC0C_hF2yy5_IkFKGyaM6xLwG6C5skIwLuz3kJyu63sDyf/s320/security5.jpg" border="0" /></a>conservation as it is about energy security and national security. Third, sustainability is ultimately defined not by governments or corporations but by society at large, thus governments and corporations need to be the eyes and ears, listening to society and transforming the state of our infrastructure, products and services to reflect societal need.<br /><br /><strong><em>Now, Hopefully Some Insight</em></strong><br />The physical impacts of climate change are likely to yield changes in how we produce, distribute store and use energy; produce, distribute and use goods and services; and produce, store, distribute and consume food. Global shifts in the production of food, availability of water and distribution of wealth may result from climate change. Couple this with damages to ecosystem services and the effects of climate change may become even more profound upon human food, information, intelligence, transportation and energy networks. A transformation is underway in the human-built environment and natural environment. In some instances we are patching-or-cleaning up mistakes of the past, in others we are seeking to prevent future mistakes. In the case of climate change the path many see before us, including Thomas Fingar, includes mitigation and adaptation.<br /><br />There are folks like Mr. Ira Feldman, president and senior counsel of</span> <a href="http://greentrack.com/wordpress/"><span style="color:#3333ff;">Greentrack Strategies</span></a> <span style="color:#000000;">that are thinking 60 months out on mitigation and adaptation strategies. Mr. Feldman recently spoke at the June 19-20th</span> <a href="http://www.ahcgroup.com/pdfs/Agenda_Workshop_Saratoga_Jun08.pdf"><span style="color:#3333ff;">AHC Group Corporate Affiliate Workshop</span></a> <span style="color:#000000;">in Saratoga Springs, NY on the topic, <em>“Three Emerging Legal and Strategic Shifts to Sustainability - - Climate Change Adaptation; Ecosystem Services; and Voluntary Standards for CSR”</em>. Speaking from this triage of emerging issues: climate change adaptation, ecosystem services and creation <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLpE63ZaJz01oRGZq24giITLqp6L3Gy689q-CXcBZYStjrzL1lJ5dNsqsmHsTdkGE78QX6pjxa_z6v843jl0550n9M8BxzutRgjInye7oI0Cum-8AS5PjYgfSWIMi1-eh2OBtmvyxTEfKP/s1600-h/security4.jpg"><img id="BLOGGER_PHOTO_ID_5215928209711964514" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLpE63ZaJz01oRGZq24giITLqp6L3Gy689q-CXcBZYStjrzL1lJ5dNsqsmHsTdkGE78QX6pjxa_z6v843jl0550n9M8BxzutRgjInye7oI0Cum-8AS5PjYgfSWIMi1-eh2OBtmvyxTEfKP/s320/security4.jpg" border="0" /></a>of management systems for CSR such as ISO 26000; Mr. Feldman offered a glimpse of the future to a diverse mix of 80 global corporate leaders on why these topics will be on the global government and corporate agendas within five years.<br /><br />In addition there are notable firms like</span> <a href="http://www.esisecurity.com/"><span style="color:#3333ff;">Environmental Security International (ESI)</span></a> <span style="color:#000000;">who are forward looking enough to be designing systems for governments and corporations focused on operational efficiency, security priorities, and risk management objectives related to the security risks of energy, environment and climate change. ESI works to evaluate and assess environmental security for critical infrastructure within the context of the strategic sustainability missions of their government and corporate clients.<br /><br />There are also thought leaders like Bruce Piasecki who published his book,</span> “<a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.: When it Comes to Solutions - Both Local and Global - Businesses Are Now More Powerful Than Government</span></a><span style="color:#000000;">” in 2007 focusing on how a new era of capitalism is reshaping how governments and corporations address adaptation and mitigation strategies through product design, selection and response to climate change. In “World Inc.” Piasecki hones in on the power of business as a transformational agent in creating a better (more secure, less polluting, more enriching) world that addressed social needs through social response product development, that is, building and delivering products that don’t just compete on price<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJRVa0pgRrw3UZhCCYFR4nHfrXYx5sUljZJR-TnLvZVKEZOkHKNOlinYITLQmbYrYY1ub0xpRaQ50xF9woouN1ETWXHdOfSa3ZZJOdxkYkKq7hF0vHElOYRTSltcO3LXfiSNdimRNLah-e/s1600-h/security3.jpg"><img id="BLOGGER_PHOTO_ID_5215928619041018194" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJRVa0pgRrw3UZhCCYFR4nHfrXYx5sUljZJR-TnLvZVKEZOkHKNOlinYITLQmbYrYY1ub0xpRaQ50xF9woouN1ETWXHdOfSa3ZZJOdxkYkKq7hF0vHElOYRTSltcO3LXfiSNdimRNLah-e/s320/security3.jpg" border="0" /></a> and technical quality, but also on their ability to address global challenges like climate change, resource consumption or ecosystem services.<br /><br />As corporations and governments think through security issues in the context of climate change, or where they are on a sustainability continuum, as well as their own climate change strategies for adaptation or mitigation, there are expert resources for them to utilize like Greentrack Strategies, ESI and the</span> <a href="http://www.ahcgroup.com/"><span style="color:#3333ff;">AHC Group</span></a><span style="color:#000000;">. As corporations and governments think about climate change, and perhaps begin to respond through policy, market or product solutions, remember that there are multiple dimensions to this issue and that the hierarchy of beliefs, values and needs is likely to be different for each stakeholder involved domestically as well as internationally. Thus, success will come from listening to multiple perspectives while framing your position and strategy in this ever-changing world.<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</span></em></span><span style="font-size:85%;"><br /></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><span style="font-size:85%;"><br /></span><em><br /><span style="font-size:85%;"><span style="color:#000000;">Want to get real about the future of energy, natural resources and capitalism, go to</span> </span></em><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><em><span style="font-size:85%;"> <span style="color:#000000;">and</span> </span></em><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><span style="font-size:85%;"><em> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism</span>.</em> </span>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-60323908687282433582008-06-09T19:27:00.000-07:002008-12-11T00:47:10.768-08:00Looking for the Next Economic Boom?: Put Your Greenbacks into Companies that Enhance Ecosystem Services<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0SvBliqIz-Wd_khexnhxr9MDEupfOxjInYfAKbtNEYu_261zGSRUvu4ODAkwB9BGRFUAXFPobpRKCD2nJJW6aQYBNiXWdKM-LQK8NerTMFXk5D6SVPdhUDSWex042YNZpDlvcnZ5kBwdH/s1600-h/watersky.jpg"><img id="BLOGGER_PHOTO_ID_5210077616340613474" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" height="276" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0SvBliqIz-Wd_khexnhxr9MDEupfOxjInYfAKbtNEYu_261zGSRUvu4ODAkwB9BGRFUAXFPobpRKCD2nJJW6aQYBNiXWdKM-LQK8NerTMFXk5D6SVPdhUDSWex042YNZpDlvcnZ5kBwdH/s320/watersky.jpg" width="275" border="0" /></a><span style="color:#000000;"><span style="font-size:130%;"><strong>Ecosystem services sustain all life on pla<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1d2hRNwSPT74Kve6pKRjtNRa22-1YbvVBmkCaanZnwKmfQG-Chw55H0SGeHt8JMsfOZJ7_swW0KSdpnmxOHIWiadV-tfj0XZK4dAeJ3iikgFL75eJEWYEf8DEls6YUqkzQsoMLmVhlA-a/s1600-h/watersky.jpg"></a>net earth.</strong> They are the critical gears, valves, filters, pumps, batteries and buffers that accomplish essential earth functions such as moderating weather, storing carbon, mitigating droughts and floods, cycling nutrients, cleaning the air and water, protecting against erosion, regulating the diffusion of disease, maintaining biodiversity, pollinating plants, decomposing wastes, rejuvenating soil and regulating climate. Ecosystem services have really only begun to be understood by humans including how essential they are to life and to the long-term sustainment and quality of life we’ve established.</span><br /><br />Ecosystem services represent the processes the produce and sustain life, many of which we have taken for granted for decades.<strong> The “commons” as some ecologic services have been come to know, are becoming less common.</strong> The availability of clean water, old growth forests and timber, habitat for fisheries and the pollination of flowers and agriculture commodities are each examples of ecosystem services, each of which is undergoing stress from overproduction, overconsumption and degradation placed upon them from a burgeoning global population of 6.5 billion people.<br /></span><br /><span style="color:#000000;">The</span> <a href="http://www.esa.org/ecoservices/comm/body.comm.fact.ecos.html"><span style="color:#3333ff;">Ecological Society of America</span></a>, <a href="http://www.fs.fed.us/ecosystemservices/farmbill.shtml"><span style="color:#3333ff;">US Forest Service</span>,</a> <a href="http://www.millenniumassessment.org/en/Condition.aspx"><span style="color:#3333ff;">Millennium Ecosystem Assessment</span></a>, <a href="http://www.iucn.org/themes/cem/ourwork/ecservices/index.html"><span style="color:#3333ff;">The World Conservation Union</span></a>, and <a href="http://www.ecosystemmarketplace.com/"><span style="color:#3333ff;">The Katoomba Group's Ecosystem Marketplace</span></a> <span style="color:#000000;">are each useful references for defining ecosystem services as well as organizations that have committed resources to understanding the science, economics and social aspects of how ecosystem services impact the future of capitalism.<br /><br />For example,</span> <a href="http://www.ecosystemmarketplace.com/"><span style="color:#3333ff;">The Katoomba Group's Ecosystem Marketplace</span></a> <span style="color:#000000;">seeks<em> “to become the world's leading source of information on markets and payment schemes for ecosystem services; services such as water quality, carbon sequestration and biodiversity.”</em> The Ecosystem Marketplace provides <em>“solid and trust-worthy information on prices, regulation, science, and other market-relevant issues, markets for ecosystem services”</em> in hopes that they <em>“will one day become a fundamental part of our economic and environmental system, helping give value to environmental services that have, for too long, <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlNgGtjJWAFL_fT2ygmyoQkS6tnU87nCn-yjaO0xrBxThYdmMgD44lquiY80aOQ-yXOc3B3Yu5UWNJvgtqN_Vfib0RhCSVvkUSrw5iaUJnUrpnWVbbfX6rIKnqqX8-zM4n5fpRLbvN95Y2/s1600-h/tree6.jpg"><img id="BLOGGER_PHOTO_ID_5210076239264353442" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlNgGtjJWAFL_fT2ygmyoQkS6tnU87nCn-yjaO0xrBxThYdmMgD44lquiY80aOQ-yXOc3B3Yu5UWNJvgtqN_Vfib0RhCSVvkUSrw5iaUJnUrpnWVbbfX6rIKnqqX8-zM4n5fpRLbvN95Y2/s320/tree6.jpg" border="0" /></a>been taken for granted.”</em></span><br /><br /><div><div><div><span style="color:#000000;"><strong>The future of capitalism is intimately linked with ecosystem services. It always has been. The key difference between the first 100 years of industrialization and the next Century is the realization that there is just as much value in preserving, protecting and enhancing ecosystem services as there is in extracting the value through consumption and degradation, marked by our behavior with ecosystem services in the last 100 years. </strong></span></div><span style="color:#000000;"><br /><div></span><a href="http://www.sciencealert.com.au/opinions/20080306-17426.html"><span style="color:#3333ff;">Gary Luck</span></a>,<span style="color:#000000;"> Associate Professor in Ecology and Environmental Management and Principal Researcher in the Institute for Land, Water and Society at Charles Sturt University has written:</span></div><div><span style="color:#000000;"><br /><em>“…I am unaware of any scientist who argues that the ecosystem-service approach should replace traditional strategies for protecting nature. However, it offers great promise as a value-adding tactic to secure conservation gains in regions dominated by humans. It is especially powerful in arguing for the importance of nature conservation in the spheres of society where moral and ethical responsibilities are sidelined – and money talks…The concept of ecosystem services offers a fantastic opportunity to link research and land management agendas across disciplines, as it can incorporate ecological assessment of service-providing organisms, economic and social valuation, and cost – benefit trade-offs of different land management strategies for both the landholder and society.”<br /></div></em></span><br /><div><span style="color:#000000;">US policy makers are now taking a serious look at ecosystem services for future policy and market based mechanisms for conserving natural resources, cleaning a<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSm5xVivJLQKr8hE-dMbEktaNtGbt6ZuZ5lCxN8tO5Bquej-mc-2Q2LzHNc4HjYx-_cmSTd5w5nj7VP7iAU1CeSX6Yrrx6HPjYQa4mGoEWz-CDzmGVC8ruCEMPO18Bq8dhVUeWvQwhKA-_/s1600-h/marsh.jpg"><img id="BLOGGER_PHOTO_ID_5210076513435228322" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSm5xVivJLQKr8hE-dMbEktaNtGbt6ZuZ5lCxN8tO5Bquej-mc-2Q2LzHNc4HjYx-_cmSTd5w5nj7VP7iAU1CeSX6Yrrx6HPjYQa4mGoEWz-CDzmGVC8ruCEMPO18Bq8dhVUeWvQwhKA-_/s320/marsh.jpg" border="0" /></a>nd protecting the environment. For example,</span> <a href="http://www.fs.fed.us/ecosystemservices/pdf/HR2419.pdf"><span style="color:#3333ff;">The Food, Conservation, and Energy Act of 2008</span></a> <span style="color:#000000;">seeks to establish a procedure, protocol and register for measuring, reporting and collecting/maintaining information on environmental (ecosystem) services within the US.<br /></span></div><br /><div><span style="color:#000000;">With 100 years of industrialization and environmental damages under our belt its refreshing to see that we’re now taking a more proactive, interdisciplinary and bipartisan approach to environmental economics and valuating the building blocks of life, environmental services. In the next 50 years there will be greater market, shareholder and public attention/emphasis on companies that conserve, protect and enhance ecosystem services – perhaps more than was ever placed on those that purely exploited resources. As we further our understanding about the full extent of “human services” embedded in ecosystems perhaps we will finally give the environment its true market valuation.<br /></span></div><br /><div><span style="color:#000000;">Watch firms like ARCADIS, Dow, DuPont, IBM, Geosyntec, Akzo Nobel, Syngenta, BC Hydro and others in years to come <em>as they identify new business opportunities to enhance, conserve and protect ecosystem services. </em>The World Resources Institute March 2008 publication </span><a href="http://www.wri.org/publication/corporate-ecosystem-services-review"><span style="color:#3333ff;">The Corporate Ecosystem Services Review</span></a> <span style="color:#000000;">is a useful on-line guide outlining and summarizing the emerging business opportunities to address human induced changes in our ecosystems.<br /></span></div><div><span style="color:#000000;"><br /><span style="font-size:85%;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</em><br /></span></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;">Mark@ahcgroup.com</span></a><br /><br /><span style="font-size:85%;"><span style="color:#000000;"><em>Additional Note</em>: In an unfortunate example of how humans impact the environment, this past week the National Oceanic Atmospheric Administration’s (NOAA) Fisheries Service officially reported that the</span> </span><a href="http://www.time.com/time/health/article/0,8599,1812918,00.html"><span style="font-size:85%;color:#3333ff;">Caribbean Monk Seal</span></a><span style="font-size:85%;"> </span><span style="color:#000000;"><span style="font-size:85%;">has become extinct, largely due to overhunting by humans; however other influences like climate change, coastal development and entanglement in marine debris played a role in this mammal’s ultimate demise.</span> </span></div></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-69315055714779035442008-05-28T11:11:00.000-07:002008-12-11T00:47:12.336-08:00Dow Chief Says it's Time to Get Out of the Petro-Desert Sandbox!<span style="color:#000000;"><strong><span style="font-size:130%;">With 46,000 Employees, $53 billion in Sales, and Top Level Committment to the <em>Human Element</em> of Business, Dow is an Emerging Social Response Product and New Age Global Business Leader Looking for a Sandy Beach Beyond the Sandy Desert</span></strong><br /><br />In a</span> <a href="http://news.dow.com/dow_news/corporate/2008/20080528a.htm"><span style="color:#3333ff;">press release</span></a> <span style="color:#000000;">issued today, Dow’s Chairman and CEO Andrew N. Liveris stated,</span><span style="color:#000000;"><em> “Our first quarter feedstock and energy bill leapt a staggering 42 percent year over year, and that trajectory has continued, with the cost of oil and natural gas climbing ever higher…the new level of hydrocarbons and energy costs is putting a strain on th<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPIILyTqxwpR02GPFpejX1vWv3Cca0wNVa-BihxskPO2rTEVaYXUp-rL1qQjs6mJmJvVkQkwZsYj5ECurm6Q0XVKHwFBNtbpcJp5-WV8dAwl8uqJVBBrlUed7K4UT_jBVPluw_lUgVKNut/s1600-h/dow+logo4.jpg"><img id="BLOGGER_PHOTO_ID_5205494958486507394" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPIILyTqxwpR02GPFpejX1vWv3Cca0wNVa-BihxskPO2rTEVaYXUp-rL1qQjs6mJmJvVkQkwZsYj5ECurm6Q0XVKHwFBNtbpcJp5-WV8dAwl8uqJVBBrlUed7K4UT_jBVPluw_lUgVKNut/s320/dow+logo4.jpg" border="0" /></a>e entire value chain and is forcing difficult discussions with customers about resetting the value proposition for our products.” <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghpXj3juC1MX6EpSzLj6pbbtQJc_KzZMPv_zM1-tkzVn9UvvbQmS5fQVzhd0zjHXiVVrfYaQKi1wRwxQU8Jb3_3gA0Irw0hME7Egj6oYDTAIHDv09CRnXwnHILkGoH98Tyv5NuUPKPA6oR/s1600-h/dow+logo.jpg"></a><br /></em><br />Liveris went on to issued the</span><span style="color:#3333ff;"> </span><a href="http://ap.google.com/article/ALeqM5hIPPBLD1H-MxzjnbiIMZpb5znazAD90UN8K00"><span style="color:#3333ff;">statement</span></a><span style="color:#000000;">, </span><span style="color:#000000;"><em>"For years, Washington has failed to address the issue of rising energy costs and, as a result, <strong>the country</strong> <strong>now faces a true energy crisis</strong>, one that is causing serious harm to America's manufacturing sector and all consumers of energy… <strong>the government's failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness</strong>, and our own domestic markets are now starting to see demand destruction throughout the U.S."<br /></em><br />One of Dow’s</span> <a href="http://www.dow.com/commitments/goals/energy.htm"><span style="color:#3333ff;">corporate energy goals</span></a> <span style="color:#000000;">is to reduce the energy intensity of its operations by 25% between the years 2005 and 2015. According to data from Dow’s </span><a href="http://www.dow.com/PublishedLiterature/dh_0127/0901b80380127204.pdf?filepath=commitments/pdfs/noreg/233-00486.pdf&fromPage=GetDoc"><span style="color:#3333ff;">2015 Sustainability Goals Update (1Q 2008)</span></a><span style="color:#000000;">, the company’s energy efficiency a<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEUFCb29t8O6kgiqabcAaGJVJPgtK3sKOng9wOEUG6htz1w_foe2GzGcidfXf_PzjaVowxWadhM-C1BWTAw-gmLSxhmN2BW_rUWDGCg77nykPoO4AP9fJMHd99VWs6ahq2YmNCQpHboX74/s1600-h/dow+logo3.jpg"><img id="BLOGGER_PHOTO_ID_5205495482472517554" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEUFCb29t8O6kgiqabcAaGJVJPgtK3sKOng9wOEUG6htz1w_foe2GzGcidfXf_PzjaVowxWadhM-C1BWTAw-gmLSxhmN2BW_rUWDGCg77nykPoO4AP9fJMHd99VWs6ahq2YmNCQpHboX74/s320/dow+logo3.jpg" border="0" /></a>nd conservation efforts have “yielded savings of over 26 trillion BTUs and $190 million” from their 2005 baseline year of measurement.<br /><br /></span><span style="color:#000000;">A company committed to seeing the “</span><a href="http://www.dow.com/hu/"> <span style="color:#3333ff;">Human Element</span></a><span style="color:#000000;">”</span><span style="color:#000000;"> in its business operations and products, Dow is focusing more on social response capitalism as a business strategy and one that embodies elements of solving the world’s most pressing challenges. Chairman and CEO of Dow has stated, <em>“Sustainability begins at home, but its destiny is to engage the problems of the world. We will build on our company's rich legacy of leadership in solving the world's most pressing problems with a spirit of fearless accountability, not just for our own footprint on the planet, but the collective footprint we make as part of the human family."<br /></em><br />Dow’s 46,000 employees develop and deliver products people in 160 countries with the goal of using science and technology to improve human progress. Dow’s sales exceeded $53 billion and net income more than $2.8 billion in 2007. It is refreshing to see that the <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjI93Ec1ceK_1adVbLyFRkJvyIRZddLUfkCiV3qOT4GB3DSM2G0GoG4y1CtO60__EVhuBSTkIqtQkQRjosOBUrKubw6iQmuv-0zs8LQf_jrrX7fDWNVZk-RKyX2dvwD1981cUE-FIPFAwka/s1600-h/dow+logo2.jpg"><img id="BLOGGER_PHOTO_ID_5205495156055003026" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjI93Ec1ceK_1adVbLyFRkJvyIRZddLUfkCiV3qOT4GB3DSM2G0GoG4y1CtO60__EVhuBSTkIqtQkQRjosOBUrKubw6iQmuv-0zs8LQf_jrrX7fDWNVZk-RKyX2dvwD1981cUE-FIPFAwka/s320/dow+logo2.jpg" border="0" /></a>executive leadership of this global firm is committed to the human element of their business as well as to sustainability. </span><br /><div><div><div><br /><div><span style="color:#000000;">Dow is an emerging leader in this new economy based on <strong><em>social response product development and capitalism</em></strong> highlighted in Bruce Piasecki’s book, <strong>“</strong></span><a href="http://www.worldincbook.com/"><strong><span style="color:#3333ff;">World Inc</span><span style="color:#000000;">.</span></strong></a><span style="color:#000000;"><strong>”.</strong> And, with aggressive goals to reduce its energy intensity within the next decade, Dow seems to be distancing itself from other firms playing in the sandy desert of an oil based past and instead looking for solutions to get to the sandy beach of a more enriched and sustainable future!<br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><br /><span style="font-size:85%;color:#000000;"><strong>Want to get real about the future of energy, natural resources and capitalism, go to </strong></span><a href="http://www.ahcgroup.com/"><span style="font-size:85%;color:#3333ff;"><strong>www.ahcgroup.com</strong></span></a><span style="font-size:85%;"><strong> <span style="color:#000000;">and</span> </strong></span><a href="http://www.worldincbook.com/"><span style="font-size:85%;color:#3333ff;"><strong>www.worldincbook.com</strong></span></a><span style="font-size:85%;"><strong> <span style="color:#000000;">to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</span></strong></span></div></div></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-59199293410261271862008-05-28T06:29:00.000-07:002008-12-11T00:47:13.895-08:00Doing Business in a Shrinking Sandbox<span style="font-size:130%;color:#000000;"><strong>Why Social Response Capitalism Will Put Us on a Sandy Beach Instead of a Sandy Desert</strong></span><br /><br /><div><div><div><div><span style="color:#000000;"><strong>All that I need to know about business sustainability, I learned in kindergarten.</strong> Are the actions and behaviors of adults and modern corporations remarkably different than those of children? This is not necessarily the most important question of our time, but its answer is revealing…No! Modern corporations and the adults that manage them are just bigger versions of the toddlers playing in local park sandbox. The sandbox has gotten bigger, and in many cases so has their ego, but the rules of play are just the same.<br /><br />We learned as toddlers to share, to play fair, to put things back where we found them, to clean up our own mess, not to take things that were not ours, to live a balanced life and to have a balance diet. Robert Fulghum <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5qXToUf6z2sPMQN4gNWROGdfVJ8RS1sQg823LyN2rkMie-sgGmY2EcDBQksZ190LsG3I_51fD1jA_bBCNs9yWFm8TJXcOxZ_Zs5TilVy_DEh1hbUtP2OewpJlonuybdGOEKb1RNfQGzvP/s1600-h/sand7.jpg"><img id="BLOGGER_PHOTO_ID_5205421669164568402" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5qXToUf6z2sPMQN4gNWROGdfVJ8RS1sQg823LyN2rkMie-sgGmY2EcDBQksZ190LsG3I_51fD1jA_bBCNs9yWFm8TJXcOxZ_Zs5TilVy_DEh1hbUtP2OewpJlonuybdGOEKb1RNfQGzvP/s320/sand7.jpg" border="0" /></a>summarized some of these early childhood discoveries in his now classic book, “</span><a href="http://www.amazon.com/Really-Need-Know-Learned-Kindergarten/dp/034546639X"><span style="color:#3333ff;">All I Really Need to Know I Learned in Kindergarten</span></a>”. <span style="color:#000000;">Like the book “</span><a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.: When it Comes to Solutions - Both Local and Global - Businesses Are Now More Powerful Than Government</span></a><span style="color:#000000;">” by Bruce Piasecki, Robert Fulghum’s book is essential reading for corporate managers and executives. It’s good to have a refresher to reevaluate why your firm is in business, how it does business, and what the future business of your firm will be.<br /><br />As companies, consumers and citizens we’ve spent too much time in the petrochemical sandbox. In fact we’ve spent so much time that we’re now being charged more and more money to even show up at the sandbox to play anymore (the month of May welcomed $130/barrel oil to the world). Today’s petrochemical sandbox is enormous. It’s includes 195 countries, 6.6 billion people, 148.94 million sq. km. of land, 361.132 million sq. km. of water and one over consumed resource – oil.<br /><br />The petrochemical sandbox is often not a clean place to play either. On November 11, 2007 more than 560,000 gallons of fuel spilled into the Strait of Kerch and in the nearby area of the Black Sea when massive seas crushed a Russian tanker. Three days prior a ship bound for South Korea spilled in excess of 58,000 gallons of oil into the San Francisco Bay when it struck a tower supporting the San Francisco-Oakland Bay Bridge in dense fog. Whether human error, natural disasters or acts of God, natural resource damages from oil are messes we need to clean up.<br /><br />It is no secret that the world is running out of oil as well as a host of other natural resources. It’s also no secret that we have a limited supply of fresh and potable water, as well as clean air. Modern society as we know it is unsustainable. While we have mastered the art of production and consumption we are not yet even apprentices in learning the art of sustainability and social responsibility. But, how do you master an art without a teacher? Earth has been around much longer than humans, so I would postulate that our teacher is present. The question is, are the students? Unfortunately most <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDETE3hjUj1HKjk2ZRFhNm8kA436MuMbwHKOMAJwC4v4yC7CY5VKOuPrahvKTakRI_QqlezHOWHWUNjaW3QhUYpf55tgoctWADQPTwgr3zJud8NltmCXbFLkgul-K_IxiTfoAoNgr6vvXu/s1600-h/oil4.jpg"><img id="BLOGGER_PHOTO_ID_5205421162358427442" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDETE3hjUj1HKjk2ZRFhNm8kA436MuMbwHKOMAJwC4v4yC7CY5VKOuPrahvKTakRI_QqlezHOWHWUNjaW3QhUYpf55tgoctWADQPTwgr3zJud8NltmCXbFLkgul-K_IxiTfoAoNgr6vvXu/s320/oil4.jpg" border="0" /></a>of the students that matter, like corporate executives or politicians, the “decision makers” are at recess or gambling their futures in the petrochemical sandbox. That’s too bad because consumers are at social response class and taking notes. In fact Americans</span> <a href="http://www.cnn.com/2008/US/05/26/gas.driving/index.html"><span style="color:#3333ff;">drove 11 billion fewer miles</span></a> <span style="color:#000000;">in 2007 compared with 2006 according to the US Department of Transportation in their own social response to higher gas prices (a year over year 4.3% decline in miles driven and the sharpest year over year decline ever recorded since the US DOT began keeping records and monitoring such data in 1942). And</span> <a href="http://www.cnn.com/2008/US/05/27/lifestyle.change.irpt/index.html"><span style="color:#3333ff;">CNN.com</span></a> <span style="color:#000000;">recently reported that some consumers and business professionals are changing their lifestyles as they choose to ride bikes away from the petrochemical sandbox as their primary mode of transport to work each day.<br /><br />While most believe the sandbox to be in Saudi Arabia, Iran, Iraq, Kuwait and Venezuela, the children at play are stationed all around the world. The petrochemical sandbox has no boundaries. It’s a modern machine pumping, refining, consuming and banking on the children to show up at the park the next day. The question is, why do we continue to show up to play in the sandbox?...Particularly in a world where we don’t share, don’t play fair, don’t put things back where we found them, don’t clean up after ourselves and don’t respect ourselves through a balanced diet. Have we learned nothing from our Kindergarten years?<br /><br />In his book “World Inc.” Bruce Piasecki examines a new paradigm in business, government and capitalism where the sandbox is no longer defined by our petrochemical past and that the new kids on the block are playing new age games that are more inclusive, cleaner, and more rewarding than the petrochemical sandbox ever was. While we have to hang onto our youth for just a little while longer, there are positive signs that we’re growing up as citizens, companies and governments to practice what we learned in Kindergarten many years ago.<br /><br />I don’t expect big egos to “say they are sorry when they’ve hurt somebody” even if that somebody is the natural environment, the economy, entire cultures or religions or thousands of retirees without adequate health <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEishZ_lU7hB0XKOZikVoyR2-Qedm2eJ31bnO9FLkA8IBgbJBqbXgXndh3VXcCP6d07Ql5j5ZafxIDuGDXlvLCmS0gX7z0hleUkQ9ntq89OgQKq53ZAhHLv-ynBmpHMOOCnESCH-x8oLzITj/s1600-h/sand3.jpg"><img id="BLOGGER_PHOTO_ID_5205421432941367106" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEishZ_lU7hB0XKOZikVoyR2-Qedm2eJ31bnO9FLkA8IBgbJBqbXgXndh3VXcCP6d07Ql5j5ZafxIDuGDXlvLCmS0gX7z0hleUkQ9ntq89OgQKq53ZAhHLv-ynBmpHMOOCnESCH-x8oLzITj/s320/sand3.jpg" border="0" /></a>coverage.<br /><br /><em><strong>But why not?</strong></em> An apology might be a healthy start. Besides, if modern innovators, scientists and entrepreneurs have it their way there will not be a petrochemical sandbox in fifty years to show up to, making discussions of peak oil relatively moot. It’s interesting how many politicians and government leaders are so focused on whether or not we are close to running out of oil versus doing anything about it at times. We get caught up in creating too many rules for our sandbox as opposed to thinking outside of our sandbox for solutions. <em>Perhaps that is where the saying “get your head out of the sand” came from?<br /></em><br />Anyway let’s stop blaming those that run the petrochemical sandbox and start developing our own end game for the future beyond oil, beyond past mistakes and beyond the impasse that we so often revert to when its easier to not share and not play fair than it is to let down our guard and world together for the betterment of commerce and the betterment of government and society. The petrochemical sandbox is a zero-sum game. In the short run we might seek to further optimize the use of oil through greater efficiency, but this ultimately just buys us more time in the sandbox, and likely not at lower cost. In the mid term we can seek to bridge the present with the future by incorporating new technologies like plug-in hybrid electric vehicles into our vehicle fleets or renewable energy technologies into our electric generation mix, but these also have their limits. </span><span style="color:#000000;">Ultimately we will likely have a mix of technologies and strategies and oil may still be one of those options. No matter what the future holds for technology we will be left with the scars of unfair sandbox play, left to clean up our messes and deal with the repercussions of an unbalanced energy diet that lasted in excess of a century. Over the next thirty, fifty or more years many of the world’s largest corporations and governments will spend in excess of one trillion dollars conducting long term operations, maintenance and monitoring (OMM) of environmental liabilities, waste sites, many left from our days playing in the petrochemical sandbox. Some might say no wonder the current cost to play in the sandbox is rising. Other might say it was truly a zero-sum game after all.<br /><br />The balanced energy diet of the future will be filled with nutritious sources of energy. To get there however will require corporations, governments, special interests and the global community to work together, play fair, and respect one another. What will be different from today is how we as companies, governments and society play in the sandbox and whether we choose to take what we learned in Kindergarten and apply it, or choose to remain petty, infantile and underdeveloped. It’s too bad so many <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8RE4YBU5iHW3lLRSJQkMi48Ub_iVh6zmoccAD-E8r8wlpvxhBkAFkqC-uG9JjFl731NCSSF-6-AO_dVxZ3xmgV-qONhVqdcvTxTU4g1hmtG_D7BE12jZWRXZ9o85cnzt24JktCtOMFqlr/s1600-h/whitehouse.jpg"><img id="BLOGGER_PHOTO_ID_5205421931157573474" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8RE4YBU5iHW3lLRSJQkMi48Ub_iVh6zmoccAD-E8r8wlpvxhBkAFkqC-uG9JjFl731NCSSF-6-AO_dVxZ3xmgV-qONhVqdcvTxTU4g1hmtG_D7BE12jZWRXZ9o85cnzt24JktCtOMFqlr/s320/whitehouse.jpg" border="0" /></a>politicians, corporate executives and even special interest groups have chosen the latter. It speaks volumes of who they are as “regular people”.<br /><br />The future of capitalism will be driven by cleaner technologies, renewable energy and innovative business models that seek to reduce pollution, optimize the efficiency of our machines and products, and create long lasting value for shareholders, stakeholders and future generations alike. Companies (and governments) that share, play fair, put things back where we found them, clean up after their own mess, don’t take things that are not theirs, and that live a balanced life with a balanced energy diet are better investments in our future. They reduce risk, extinguish liabilities and seek to enhance quality of life by delivering on social needs. Removing our heads from the petrochemical sandbox is a start. <strong>Ultimately we will diminish our reliance on oil and just might reshape our economy in the process so that we can someday relax on a sandy beach instead of buying time by fighting in a sandy desert.<br /><br /></strong><span style="font-size:130%;"><em>Want to get real about the future of energy, natural resources and capitalism, go to</em></span></span><span style="font-size:130%;"><em> </em></span><a href="http://www.ahcgroup.com/"><span style="font-size:130%;color:#3333ff;"><em>www.ahcgroup.com</em></span></a><span style="font-size:130%;"><em> <span style="color:#000000;">and </span></em></span><a href="http://www.worldincbook.com/"><span style="font-size:130%;color:#3333ff;"><em>www.worldincbook.com</em></span></a><span style="font-size:130%;"><em> </em></span><span style="font-size:130%;color:#000000;"><em>to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.</em><br /></span><br /><span style="font-size:85%;color:#000000;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</em></span></div><div><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a> </div></div></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-7666230727448624812008-04-30T18:18:00.000-07:002008-12-11T00:47:14.500-08:00fOILed by our spOILs<span style="color:#000000;"><strong><span style="font-size:130%;">Companies are eliminating the potential for future energy market turmoil through social response energy diet solutions in their operations, product portfolio and community relations.<br /><br />Is continued economic growth in the US and the world obstructed by the price and availability of oil? Is the lifeline of modern society clotting, or is it simply thinning out and offering no substantial pressure to continue its legacy of economic growth? Are the days of plundering ending or just beginning?</span><br /></strong><br />Oil has given society many rewards: the ability to transport people, goods and services; the ability to heat and electrify; the ability to produce quality products and services; the ability to shelter, feed and cloth billions of people; the ability to advance civilization through education, healthcare, telecommunications and scientific advancement.<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMYsnQmRQ8oqaYN4stUpD-89B-aVmneXvaiDoeBpIl7qOHYu_IQTsTi0SYDHD8fBIRlJW9aE231ul2CBIQ-BXKjCD_rKDA4ZPfqQL0ijxgwuv4kEINLm5cyqEoH2J8yQNOVMCyXRHOEzCQ/s1600-h/oil3.jpg"><img id="BLOGGER_PHOTO_ID_5195215390799776178" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMYsnQmRQ8oqaYN4stUpD-89B-aVmneXvaiDoeBpIl7qOHYu_IQTsTi0SYDHD8fBIRlJW9aE231ul2CBIQ-BXKjCD_rKDA4ZPfqQL0ijxgwuv4kEINLm5cyqEoH2J8yQNOVMCyXRHOEzCQ/s320/oil3.jpg" border="0" /></a><br /></span><a href="https://www.cia.gov/library/publications/the-world-factbook/fields/2001.html"><span style="color:#3333ff;">The World Factbook</span></a> <span style="color:#000000;">published by the CIA lists the top economies of the world. In the list of 193 nations, firms like Wal-Mart and Exxon Mobil would rank in the top 30 largest economies of the world. If you totaled the sales of the following eight oil giants, they would equate to one of the top ten economies of the world.<br /><br />Exxon Mobil<br />Royal Dutch Shell<br />BP<br />Total<br />Chevron<br />ConocoPhillips<br />Pemex (Mexico)<br />Petrobras (Brazil)<br /><br />The sales of eight giants listed above exceed $1.8 trillion and their revenues exceed $160 billion. Together these firms employ more than 680,000 people worldwide.<br /><br />Oil is one of the most widely used commodities on earth. Some 85 million barrels of oil are produced and used per day globally according to the</span> <a href="http://www.eia.doe.gov/emeu/ipsr/t21.xls"><span style="color:#3333ff;">Energy Information Administration</span></a><span style="color:#000000;">, the data and analysis arm of the USDOE. Oil prices have reached record high’s topping more than $120/barrel in recent days. Over the past decade the price of oil has increased more than 1000%. On December 28, 1998 the price of oil was approximately $10 barrel. And during the week of April 22nd 2008 the price of oil flirted with $118, $119, and $120 per barrel.<br /><br />The world has a love hate relationship with oil. When the economy is strong and the pocketbooks fat, we forget about the price of oil. When the economy struggles and our pocketbooks empty, we focus intently on the price of oil and point to it as the root of all economic evil. Every Greek tragedy needs a lead antagonist, and in the story of the rise and fall of global industrialization the antagonist is oil.<br /><br /><strong><span style="font-size:130%;">tOILing toward a balanced energy diet<br /></span></strong>Oil has been the consummate enabler for industrialized nations to feed the veins of commerce with a “performance enhancement” and “mood adjusting” supplement. It’s almost too bad that there were not product disclosures and warnings 100 years ago before we became fully addicted. You know those commercials where they say “side effects may include…nausea, vomiting, fatigue, etc.”. Perhaps the disclosure for oil would have read, “side effects may include…sluggish economy, natural resource damages, global warming, geo political and economic warfare, social inequity, and detachment from living due to chronic idle time spent driving”.<br /><br />But truth of the matter is that 100 years ago we had no idea about the scale and magnitude by which oil would play in everyday life, our economy, our standard of<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQtEwJgRiCtQ26Oy1Yzkek_F3Va2Y-V05sE0jm_AW2jH-xPPiCxW9exbKPJ9Vhm_AVZGVpX7_128xVkhZu5F2U5Cq00Rad3Rn3d06YcbMUaqG0ZLlyvg9OQlCA1mxp1qTJExIXm_ncbeN6/s1600-h/oil2.jpg"><img id="BLOGGER_PHOTO_ID_5195215618433042882" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQtEwJgRiCtQ26Oy1Yzkek_F3Va2Y-V05sE0jm_AW2jH-xPPiCxW9exbKPJ9Vhm_AVZGVpX7_128xVkhZu5F2U5Cq00Rad3Rn3d06YcbMUaqG0ZLlyvg9OQlCA1mxp1qTJExIXm_ncbeN6/s320/oil2.jpg" border="0" /></a> living, and our ability to sustain critical infrastructure and networks. As oil has pumped through the veins of commerce, we’ve grown. But like the overuse of performance enhancement drugs in top athletes, too much can result in serious injury, suspension of play, or even death. In the case of oil, perhaps we’ve grown so quickly and have become so strong; we simply cannot score enough performance enhancement oil to help us keep pace. Or perhaps we’re now overweight, bloated and ready to suffer a massive heart attack due to one or more blockages in our system (<em>e.g.,</em> global demand, climate change, availability of refineries, aging infrastructure, cost pressures, etc.).<br /><br />Oil is not bad. It’s just a performance enhancer that has been over sold and over used. Sure it has its side effects, but no technology or energy source is without their fair share. And, with 6.5 billion addicts around the world a premium can be placed on the availability, price and quality of oil. Oil is an earth based commodity with a man-made purpose. Sometimes that point is lost. We’ve created a flat world whose pace of growth has quickened, all in part to our friendly performance enhancer, oil. We have the ability to transform our flat world into a new dimension, neither round nor flat, but shapeless bound by only our imagination and innovation to bring to it new life not bound by technology, resource or ideological constraints. Oil will have a place in this new shapeless world, but so to will other forms or energy that will displace and yet balance our traditional thirst for petro-based nourishment.<br /><br /><strong><span style="font-size:130%;">bOILing this down<br /></span></strong>When it comes to high energy prices and environmental challenges related to oil, we need to move beyond blame and get serious about creating real change. It's so easy to blame the Bush Administration or point the finger toward OPEC or hedge fund managers that are perceived to be in cahoots with big oil executives padding their wallets and patting each other on the back for influencing oil markets and reaping huge profits. Are their inefficiencies, potential back door deals, unneeded confusion in how the price of oil is set? Sure, but blaming one administration or one company over another will solve nothing and will only fuel more wasted time, money, and oil. </span><br /><div><div><div><div><div><span style="color:#000000;">The 21st Century challenge before each of us, as consumers, industrialists, policy makers, shareholders, innovators, scientists, students and conservationists is to collaborate on a way to reduce our appetite for oil while simultaneously working toward performance enhancement supplements that we can develop and use to round out our energy diet.<br /><br />So often I hear references to the “silver bullet” technology that will transform our energy diet. According to the Schlumberger <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNvH9XMldijXZenDcD4AV_SbUsSO_qpJp86c-XpSmb-AdbmNT_RrLsgP-8mrjhum1vA34eeYDCyQmFXgC0XpNjAWu1iwqOfIZJ9PyDXPNUbP662SoUUoYvV64k0lUk-dK-0ZUA5BJ0jeLM/s1600-h/oil1.jpg"><img id="BLOGGER_PHOTO_ID_5195216236908333538" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNvH9XMldijXZenDcD4AV_SbUsSO_qpJp86c-XpSmb-AdbmNT_RrLsgP-8mrjhum1vA34eeYDCyQmFXgC0XpNjAWu1iwqOfIZJ9PyDXPNUbP662SoUUoYvV64k0lUk-dK-0ZUA5BJ0jeLM/s320/oil1.jpg" border="0" /></a>Excellence in Educational Development project, oil was first drilled in </span><a href="http://www.seed.slb.com/qa2/FAQView.cfm?ID=906"><span style="color:#3333ff;">347 AD</span></a>. <span style="color:#000000;">Since that time oil has been somewhat of a “silver bullet” for the energy needs of human kind. Oil has provided us with heat, electricity, transport, cooling, and that performance enhancing high that has fostered economic growth. But we now know that oil cannot be the “silver bullet” for our future prosperity or sustainability.<br /><br />There is no “silver bullet” anymore. A well balanced diet has a mix of energy sources rich in nutrients. A well balanced energy diet may include exercise (energy demand reduction), it may include a balanced approach (combined heat and power, distributed generation), it may include options low in proverbial cholesterol – that is carbon (wind power, solar, geothermal, etc.) it may include fortified vitamins and minerals (engineered petrochemicals and biofuels) and it may include new age supplements yet to be fully qualified (fuel cells, hydrogen, carbon sequestration techniques). The point is that we need an energy diet that is balanced, nutritious and positions us for longevity, not just performance enhancement. The performance enhancement will come from a renewed focus on energy research and development and new innovations. Besides are we foolish enough to believe the best we can do as a society is rely primarily on an oil based economy? Is that the extent of our ingenuity and imagination? Oil has given us so much, but its time to transition to more secure, reliable and economic sources of energy that promote independence and sustainability.<br /><br /><strong><span style="font-size:130%;">social response to energy - avoiding energy market turmOIL through social response product development, deployment and capitalism</span></strong></span></div><div><span style="color:#000000;">It’s time for the oil economy to be shaken up, agitated, and churned. It’s certainly causing enough turmoil at its current state of being today. High energy prices, environmental degradation, water and soil contamination, air pollution, climate change, inequitable distribution of wealth, socio-political conflict. These are the spoils of oil? I don’t believe that’s what we had intended.<br /><br />If the state of civilization were equated to the life-cycle of a human, we’re still in our infancy. We’ve been formula fed with oil for a few weeks/months and now its time to introduce new nutrients into our everyday diet so that we can grow, mature and lead a balanced life. The largest economies of the world, from industrialized nations to the wealthiest of corporations are taking strategic, proactive and leadership actions to prepare them for an exciting childhood, adolescence, adulthood and old age.<br /><br />Companies that are rounding out their energy diet are becoming better investments. As they transition from the one-dimensional oil based economy to a multi-dimensional energy services economy they ultimately hedge on the price of energy in the future. In addition they are more apt to compete over a longer term as well as offer better products at a better price as they are less reliant on price fluctuations associated with oil. We call companies with well balanced energy diets social response leaders because they are positioning themselves for future growth and with growth that is in alignment with societal needs and values. Companies, large and small, public and private, that we classify under the heading of social response leaders (due to their responsible and innovative approaches toward a balanced energy diet and new age product and service innovation) include:<br /><br /></span><a href="http://www.boeing.com/commercial/787family/"><span style="color:#3333ff;">Boeing</span></a> <span style="color:#000000;">– is developing lighter and more fuel efficient airliners. This is a social response product innovation that is adaptive – meaning it seeks to optimize efficiency and reduce demand for aviation fuel. In the absence of other forms of energy, Boeings fuel efficient 787 Dreamliner is a dream. Boeing is contributing to a new era of efficiency in air travel that will reduce side effects of a petroleum rich diet like carbon emissions. With greater fuel efficient aircraft, Boeing stands to fly 30,000 feet above its competition toward a balanced energy diet.<br /></span><br /><a href="http://www.cn.ca/about/environment/loco_emissions/loco_fleet/en_SECNLocoFleetRen.shtml"><span style="color:#3333ff;">Canadian National</span></a> <span style="color:#000000;">– is a Canadian rail company that operates the largest rail network in Canada and the only transcontinental network in North America. The company operates in eight Canadian provinces and 16 U.S. states. As part of its equipment upgrade policy the company is upgrading its fleet of locomotives with models that are at least 17% more fuel efficient than their predecessors which reduces air emissions and enables more efficient delivery of goods. The company also remanufactures its older locomotive engines which reduces waste, recaptures energy used in manufacturing processes and minimizes the need to produce new materials for locomotive engines. Canadian National optimizes the flow of goods through the use of rail, a demand side response to energy use in our transportation sector.<br /></span><br /><a href="http://www.energyanswers.com/"><span style="color:#3333ff;">Energy Answers International</span></a> <span style="color:#000000;">– offers communities a resource recovery solution to solid waste. Since 1981 the company has been developing resource recovery facilities around the world with a goal of zero disposal of waste. The company works within communities to find equitable and economical production of energy. The company often works on Brownfield sites giving once blighted industrial facilities new productive uses and upgraded with state-of-the-art clean technologies that enable the more sustainable production of energy. Energy Answers excels at discovering how energy use can be optimized through the use of waste resources, another important input into a balanced energy diet.<br /></span><br /><a href="http://www.evgenergy.com/about.shtml"><span style="color:#3333ff;">Evergreen Energy Inc.</span></a> <span style="color:#000000;">– out of Denver, CO this small but growing company is attempting to transform the US’s largest energy resource (coal) into a highly efficient, low emission and economically viable fuel for the future. Evergreen Energy’s technology is offering many US industries and electric utilities a new option to balance their energy portfolio into the future. Reducing carbon dioxide emissions, enhancing the efficiency of operations and offering a cleaner fuel option for the future are each elements of the Evergreen Energy technology platform. Evergreen Energy is innovating new solutions for minimizing the impact of abundant fossil fuel resources, an important element of a well balanced national energy diet.<br /></span><br /><a href="http://www.fuhrlaender.de/"><span style="color:#3333ff;">Fuhrlaender AG</span></a><span style="color:#3333ff;"> </span><span style="color:#000000;">– one of the last (if not the last) privately owned and operated wind manufacturing companies in the world is also one with a strong product portfolio. Based out of Waigandshain, Germany this company has been a quiet innovation leader for years. They are <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHwDmNww7sAGNazEVcYKAg2gFUSnQTAxTarhJziIDE8ev7qbGk0b3lcAFb27lmP3m42IWc5bbxNMnZK9f0cDm8cIN6Q0NjgTuM17x2xHfc_CLF_A0A5r5UXAS_yUAti4Uc39kbsWJydH8u/s1600-h/FLAG7.jpg"><img id="BLOGGER_PHOTO_ID_5195216881153427954" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHwDmNww7sAGNazEVcYKAg2gFUSnQTAxTarhJziIDE8ev7qbGk0b3lcAFb27lmP3m42IWc5bbxNMnZK9f0cDm8cIN6Q0NjgTuM17x2xHfc_CLF_A0A5r5UXAS_yUAti4Uc39kbsWJydH8u/s320/FLAG7.jpg" border="0" /></a>developing more reliable wind turbines and with designs that are conducive to quick maintenance enabling them to be in operation longer thereby generating every last kWh that is possible. They’ve expanded into China and seeking to foster more sustainable growth of emerging economies through their portfolio of wind products that range from 30 kW to 2.5MW. The firm was one of the first in the industry to launch a production model for a 2.5MW wind turbine. Small, agile and committed to quality, Fuhrlaender AG is truly a “friendly energy” company that is worth watching in years to come even if not the size of a GE, Suzlon or Vestas. Fuhrlaender offers new economies an energy diet supplement, one that is less harmful and ultimately longer-lasting thereby contributing to a healthier energy diet.<br /></span><br /><a href="http://www.greenmountaincoffee.com/ContentPage.aspx?Name=BBW-Protecting-The-Environment"><span style="color:#3333ff;">Green Mountain Coffee Roasters</span></a> <span style="color:#000000;">continuously brews better coffee and a better world through social response innovations in their facilities, supply chain, products and operations. In the energy realm the company installed an electricity cogeneration system at its Waterbury, VT facility to reduce demand and reliance on the electric grid. The company also purchases 100% of its electricity from renewable energy credits making them greenhouse gas neutral. The company sets an annual goal to reduce energy use by 5% per a certain unit of sales. In 2006 the company reduced its natural gas usage by 15% from the previous year. The company has been active in conducting energy audits of its facilities and offices and retrofitting equipment where possible to foster energy efficiency improvements. The company is also greening its fleet of vehicles and encourages conservation of energy among its employees.<br /></span><br /><span style="color:#000000;"><span style="font-size:130%;"><strong>Social response corporate leaders are balancing their energy diet within their operations, their product portfolio, among their employees and within the communities in which they operate. Ultimately their more balanced energy diet is translating into a stronger business and a stronger bottom line due to operational efficiencies, cost recovery, product innovation, margin improvements and enhanced reputation.<br /><br />Everyday we see more and more companies making conscious decisions to evaluate their firms’ energy diet and ways to enrich their diet. Share with us some of the corporate leaders you are aware of that are creating a more balanced energy diet for their operations, employees, customers, shareholders and communities in which they operate.<br /></strong></span><br /><span style="font-size:85%;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></em></span></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><span style="font-size:85%;"><br /><span style="color:#000000;">Author note: The</span> </span><a href="http://www.energy-base.org/no_cache/english/home/newsdetail/article/162/92/neste/7.html"><span style="font-size:85%;color:#3333ff;">Basel Agency for Sustainable Energy</span></a><span style="font-size:85%;"> <span style="color:#000000;">(BASE) provides a summary of big oil’s investment in alternative and renewable energy. While not summarized in this blog, the BASE summary is a useful comparison of the capital expenditures of big oil versus their investments in other forms of energy production. </span></span></div></div></div></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-15071859336134630642008-04-15T12:42:00.000-07:002008-12-11T00:47:14.977-08:00A “Force for Global Good”…From Flighty Service to Social Response Leader: How Delta Airlines is Reshaping the Future of the Global Airline Business<span style="color:#000000;"><span style="font-size:130%;"><strong>With flights to 481 destinations in 105 countries on Delta, Delta Shuttle®, the Delta Connection® carriers, and their Worldwide Partners®, Delta Air Lines operates service to more destination than any global airline.</strong></span><br /></span><br /><span style="color:#000000;">This past week</span> <a href="http://www.delta.com/about_delta/corporate_information/index.jsp"><span style="color:#3333ff;">Delta Airlines</span></a> <span style="color:#000000;">topped itself as a global destination leader with the</span> <a href="http://travel.latimes.com/articles/la-trw-delta15apr15b"><span style="color:#3333ff;">acquisition</span></a> <span style="color:#000000;">of Northwest Airlines. The merger creates the world’s largest airline, a firm with that will have a <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv1JhY2qACZOzNkoOyPPu3ve_XMg70bl9Imi_yJ-C6MMKcCK65bW4xaBCeG8kKn3eo4VNhZivgfYFn7KpKiVPiBsGhuyPEohJOMjBkNoKJGO4ovMoB_5Y11I1e_omrfexj0hXwdAyjyJGW/s1600-h/delta4.jpg"><img id="BLOGGER_PHOTO_ID_5189561455175670498" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv1JhY2qACZOzNkoOyPPu3ve_XMg70bl9Imi_yJ-C6MMKcCK65bW4xaBCeG8kKn3eo4VNhZivgfYFn7KpKiVPiBsGhuyPEohJOMjBkNoKJGO4ovMoB_5Y11I1e_omrfexj0hXwdAyjyJGW/s320/delta4.jpg" border="0" /></a>value of approximately $17.7 billion (according to Delta). According to a </span><a href="http://travel.latimes.com/articles/la-trw-delta15apr15b"><span style="color:#3333ff;">LATimes.com</span></a> <span style="color:#000000;">article, the Delta/Northwest merger provides Delta with a fleet of 800 planes with a staff of 75,000 employees. In addition, Delta will now fly more than 105 million passengers annually to more than 390 cities worldwide, and would be the largest airline in terms of fleet, destinations and total passengers.<br /><br />What’s interesting about the Delta and Northwest merger is the potential for Delta’s existing</span> “<a href="http://www.delta.com/about_delta/global_good/index.jsp"><span style="color:#3333ff;">Force for Global Good</span></a>” <span style="color:#000000;">initiative may have even greater global reach and influence. For those that are unaware, Delta’s “Force for Global Good” initiative is essentially their corporate social response solution to foster a more sustainable environment in the regions in which they provide service throughout the world. Delta’s web-site notes:<br /><br /><em>“Delta's employees, customers, and community partners—together form a force for positive local and global change, dedicated to bettering standards of living and the environment where we and our customers live and work. We are Delta's Force for Global Good.”</em><br /><br />Delta focuses its “<strong><em>Force for Global Good</em></strong>” initiative on four critical social needs:<br /><br />1. <strong>Breast cancer research</strong> in partnership with</span> <a href="http://www.delta.com/about_delta/global_good/breast_cancer_research/index.jsp"><span style="color:#3333ff;">The Breast Cancer Research Foundation</span></a>.<br /><br /><span style="color:#000000;">2. <strong>Protection and restoration of wildlife habitats</strong> including reforestation efforts in partnership with</span> <a href="http://www.delta.com/about_delta/global_good/conservation_fund/index.jsp"><span style="color:#3333ff;">The Conservation Fund</span></a>.<br /><br /><span style="color:#000000;">3. <strong>Elimination of poverty and substandard living conditions</strong> in partnership with</span> <a href="http://www.delta.com/about_delta/global_good/habitat/index.jsp"><span style="color:#3333ff;">Habitat for Humanity</span></a>.<br /><br /><span style="color:#000000;">4. <strong>The need to think global but also act local</strong> on issues pertaining to “health and wellness” through its unique partnerships like the American Red Cross, Children’s Miracle Network, Martin Luther King, Jr. National Memorial Foundation, American Cancer Society, and The Juvenile Diabetes Research Foundation International.<br /></span><br /><span style="color:#000000;">Delta’s unique social response approach for engaging employees, communities and customers to have positive influence and impact on social needs is gaining elevation and respect. In 2007 Delta <em>employees</em> contributed more than $500,000 to The Breast Cancer Research Foundation, a </span><a href="http://www.webwire.com/ViewPressRel.asp?aId=61210"><span style="color:#3333ff;">record </a></span><span style="color:#3333ff;"><a href="http://www.webwire.com/ViewPressRel.asp?aId=61210"></span></a><span style="color:#3333ff;">year for fund-raising</span> <span style="color:#000000;">at Delta on behalf of this cause.</span><br /><br /><span style="color:#000000;">Delta’s “<em>Force for Global Good</em>” initiative involves not just the firms’ employees and <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvq-8kKTSFK1LqnReA-B6NAj91P4eoknfOgUdt5CjZRHV2fNeAvRfd4S69eZPG6uNamY-5smKLyh8JB2BCdcX4W9ODJhJzupsqjUcon4bMnUVFl94OHE4UTynwIHPxZCwXPhn9mYFrUw8C/s1600-h/airbus.jpg"><img id="BLOGGER_PHOTO_ID_5189561558254885618" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvq-8kKTSFK1LqnReA-B6NAj91P4eoknfOgUdt5CjZRHV2fNeAvRfd4S69eZPG6uNamY-5smKLyh8JB2BCdcX4W9ODJhJzupsqjUcon4bMnUVFl94OHE4UTynwIHPxZCwXPhn9mYFrUw8C/s320/airbus.jpg" border="0" /></a>community partners, but also <em>customers</em>. In the month of April 2008 Delta will “match all carbon offset donations” made by ticket purchasers to their “<em>Force for Global Good</em>” partner, The Conservation Fund via delta.com. Carbon emissions offsets can be made when airline tickets are purchased at delta.com. Delta’s offer states, <em>“For every customer who donates to The Conservation Fund when they purchase a ticket online at delta.com between April 1 and April 30, 2008, Delta will match the contribution amount up to $10,000 for total contributions.”</em> For those travelers seeking to reduce their carbon footprint associated with airline travel, the Delta Airlines April 2008 promotion is a wonderful way to have an even greater impact. 100% of the carbon emission offset donation will benefit The Conservation Funds’s</span> <a href="http://www.conservationfund.org/gozero"><span style="color:#3333ff;">Go Zero</span></a> <span style="color:#000000;">program.</span><br /><br /><span style="color:#000000;">The Conservation Fund’s <em>Go Zero</em> program uses financial donations to plant trees to help offset carbon emissions. The Conservation Fund notes, “The average American's annual carbon footprint is just over 20 tons”. For airline travelers making a roundtrip flight from New York City to Los Angeles and back their carbon footprint would equate to approximately 1.19 tons (according to the</span> <a href="https://gozero.conservationfund.org/calc/air"><span style="color:#3333ff;">The Conservation Fund - GoZero Calculator</span></a>. <span style="color:#000000;">The Conservation Fund estimates that at least one tree should be planted to offset each round trip between New York and Los Angeles.<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuPVWmmm4OMivinsZY8WzD6-mSEWxJmkJhbDXpE6EG2ruPQNhJRhG7xKCb9cIyu3A2WfL8UnbyKrWZDEqdaE6EdlzwJBvHEHYOzeJICvKdrpbiwSdOphQXTZzf1ypodAjXrIa72ewcTv9e/s1600-h/delta.jpg"><img id="BLOGGER_PHOTO_ID_5189561742938479362" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuPVWmmm4OMivinsZY8WzD6-mSEWxJmkJhbDXpE6EG2ruPQNhJRhG7xKCb9cIyu3A2WfL8UnbyKrWZDEqdaE6EdlzwJBvHEHYOzeJICvKdrpbiwSdOphQXTZzf1ypodAjXrIa72ewcTv9e/s320/delta.jpg" border="0" /></a><br />At a time when airlines are being touted as the “</span><a href="http://www.nytimes.com/2006/10/30/business/media/30fuel.html?_r=1&oref=slogin"><span style="color:#3333ff;">New Culprit in Climate Change</span></a><span style="color:#000000;">”, Delta’s social response partnership with The Conservation Fund to offset carbon emissions through reforestation practices is timely and necessary. Today’s companies are not evaluated by financial rating agencies, government, consumers or shareholders based solely on quality, service and price. These traditional tenants of business success remain the key performance indicators today. However, new indicators of success, focused on long-term sustainability are now reshaping how firms like Delta think about and conduct their business globally.<br /><br />Building homes and revitalizing communities, conserving wildlife and natural resources, supporting local not-for-profit organizations focused on health and wellness, these are not the day-to-day business activities of most large corporations, particularly those that transport people over the Atlantic and Pacific oceans. However in an effort to create a better company and a better world, one that is more healthy, more diverse, and full of life and promise, Delta Airlines is becoming a “<em>Force for Global Good</em>”, competitively and philanthropically.<br /><br /><span style="font-size:130%;"><em><strong>Does it make sense for a global airline like Delta to offer carbon emission offset programs in partnership with The Conservation Fund? Share with us your thoughts on how the Airline Industry can couple “green with green”, that is, remain financially strong while addressing contemporary environmental and energy challenges associated with airline travel.</strong></em><br /></span><br /><span style="font-size:85%;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></em></span></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;"><em>Mark@ahcgroup.com</em></span></a>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-23618426974632038772008-03-07T06:09:00.000-08:002008-12-11T00:47:15.694-08:00For Businesses and Governments Embracing Social Response Capitalism…“All the World’s a Stage”<span style="color:#000000;">Shakespeare historically noted that we’re all merely players on this global stage – each with our exits and our entrances. Perhaps if he were alive today Shakespeare would say the same about the character and condition of the modern global corporation. Some companies come and some go. The only certainty is uncertainty in a global business<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJEPCx8xP_NUCDgYF3Nk1gW9anuWsDzUjLL5J2lhF8huwoFesuvITWpiiK45ZwKuXG0b1CYH-cKvHBwu6V2fVIgqQWZCyecW0Y9q0vBgjfxgAzedduj1JRnU2WJ7EpaiNszfXrS0gIMnfu/s1600-h/shakespear.jpg"><img id="BLOGGER_PHOTO_ID_5175007641018503874" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" height="221" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJEPCx8xP_NUCDgYF3Nk1gW9anuWsDzUjLL5J2lhF8huwoFesuvITWpiiK45ZwKuXG0b1CYH-cKvHBwu6V2fVIgqQWZCyecW0Y9q0vBgjfxgAzedduj1JRnU2WJ7EpaiNszfXrS0gIMnfu/s320/shakespear.jpg" width="301" border="0" /></a> environment. However, advancements in how global firms and governments think about, value, define and act out their respective futures are beginning to define who stays on stage longer than others… <strong>Emerging economies, social response corporate leaders, and governments and universities around the globe are seeking the knowledge from Bruce Piasecki’s book “World Inc.”. Piasecki’s summary on how the collision of capitalism and social responsibility is shaping the near future resonates with product and policy innovators both domestically and abroad.<br /></strong><br />When Bruce Piasecki released his 6th book, “</span><a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.: When it Comes to Solutions - Both Local and Global - Businesses Are Now More Powerful Than Government</span></a><span style="color:#000000;">” in April 2007 he knew that in the fast paced marketing savvy business of publishing that it takes a great deal of time to have foreign editions sold. Having written and published five previous books including the Nature Society's book of the year, In Search of Environmental Excellence: Moving Beyond Blame, Piasecki was prepared, like many authors, to travel to new destinations, meet new people, and actively market his new work.<br /><br />What caught Piasecki by surprise in the 9 months after the release of “World Inc.”, however, was just how rapidly the book’s rights were sold as foreign editions. In less that a year, Bruce Piasecki’s “World Inc.” is on its way to being translated and sold in:<br /><br /><strong>Brazil – Greece – Italy – Japan – Korea – Portugal</strong><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjI5hKCIGlV7eeNWKnQrJRJ39BEe324W9IGt4o9qivWAlFYQLqo7Vv17H79-WRm4rPzps6UcUkC4abgCTkWbIVKU7kjzlOm2RkL58ucgJmTpY_bx0jw5lvImUdi-3lT9LJxjPJ11MuVsKQm/s1600-h/winc+cover+Japanese.jpg"></a><br />What’s interesting to me about the proliferation of the boo<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9GXfEIibpFHclcUmLbNFr8bSff2GamjBmimURDnJgJJj3L1Cv5w2SwC_zwie31FOlr_JsGvkRu2D4IFQlAN4a2xlUmUCw0Vz6aaFmFFqmTqkuBPbWoDjC7ieUCoWxwoiVND-bSrskbxK8/s1600-h/wincitaly.jpg"></a>k globally is the way other regions of the world are finding new grounds for hope and inspiration in reading their translated <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2qJED8u8LusTt1-UzM9WlSnOfy6b3mCDuUo_K1u2xCXfzSZUFE31zrVci1hw6F8U8yG6IauwAwNrRcOxWqmRo4aqM1ngYrQwh12lweM63Gp59uowUlaRIjOqrVaHAJeGlmWx2lE5TM8K0/s1600-h/winc+cover+Japanese.jpg"><img id="BLOGGER_PHOTO_ID_5175004698965906082" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 221px; CURSOR: hand; HEIGHT: 230px" height="279" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2qJED8u8LusTt1-UzM9WlSnOfy6b3mCDuUo_K1u2xCXfzSZUFE31zrVci1hw6F8U8yG6IauwAwNrRcOxWqmRo4aqM1ngYrQwh12lweM63Gp59uowUlaRIjOqrVaHAJeGlmWx2lE5TM8K0/s320/winc+cover+Japanese.jpg" width="273" border="0" /></a>version of “World Inc.”. For example a Japanese reviewer recently noted, <em>“…in Japan, Corporate Social Responsibility became a very popular concept in the last few years, and people are more and more concerned about CSR, environmental problems, and the future of capitalism…”.</em><br /><br />As the world’s developed and developing nations wrestle with limitations to their natural resources, energy security and doing business in a more environmentally and socially responsible way, “World Inc.” is providing a source of enlightenment while serving as a social response solution in its own right by educating and inspiring the leaders of today, and tomorrow. We also see how many foreign governments, corporations and citizens are beginning to frame the discussion Piasecki expertly crafts within “World Inc.” into a roadmap for how they can work collaboratively into the future. As social response capitalism eclipses capitalism as an advanced form of doing business, we believe more governments and corporations will take note.<br /><br />From a US perspective I find it encouraging that foreign corporations and governments are so engaged in discovering “social response capitalism” through Bruce Piasecki’s “World Inc.”. Many US based corporate, social and government leaders have engaged Piasecki on <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKG5Z0srwBLsxHqQndNDwH9Z1fAMFGkkplUweXjxsANYpxzQy0A6Mh5QNLlTsJm8nfc_DeUQNPsukW8m1v3Oncl0qY-CvkXJ-8V4ZmT2vntSRtMmX9ahGIH76n93n9WhSGmpJ0OvHik0pL/s1600-h/winc+cover+Greece.jpg"><img id="BLOGGER_PHOTO_ID_5175002581547029074" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKG5Z0srwBLsxHqQndNDwH9Z1fAMFGkkplUweXjxsANYpxzQy0A6Mh5QNLlTsJm8nfc_DeUQNPsukW8m1v3Oncl0qY-CvkXJ-8V4ZmT2vntSRtMmX9ahGIH76n93n9WhSGmpJ0OvHik0pL/s320/winc+cover+Greece.jpg" border="0" /></a>“World Inc.” to speak to them and help them learn what foreign nations are so interested in. That is, how can growth occur in a socially and environmentally responsible way while delivering financial value to shareholders? As the swiftness of information and severity of market conditions push more businesses toward social response capitalism it becomes necessary to learn from other corporate, government and social leaders. Piasecki’s “World Inc.” is a life time of learning wrapped into a couple hundred pages of prose and wisdom that is shaping the foundations of business and governments globally.<br /><br /><span style="font-size:130%;"><strong>Remove Complacency from the Existing Equation</strong><br /></span>The competitiveness of US based companies will be tested in years to come on their ability to address social needs. When I see other nations and foreign corporations embracing the theme’s of “World Inc.” I sense that the world is transitioning from an industrial age where machines were king to a socially responsible and enlightened age where social consciousness merges with economics and democracy. On occasion I hear rumblings of other nations of the world developing so fast that they may actually leap-frog the US with regard to the state-of-the-art technologies and infrastructure. That is not a bad thing if you consider green growth and sustainable development as global imperatives in the 21st Century. However, from a competitiveness point of view it could hurt the US whose aging infrastructure is in need of a technology refresh. In addition the US has an aging population of engineers, scientists, researchers, educators and manufacturing leaders whom seek to retire in the next ten to fifteen years. The baby boomer and previous generations may be leaving behind an infrastructure that was once a poster child for prosperity, but may now look weak and decrepit to the newer, faster, and more efficient infrastructures of other nations.<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLSKlXgdFujNUKvy8R_xJc5b0ybQNAFuA2SstwV9_ybmeKlbQuvd8zkUKWxZvtzK-k-LNVDjk-FNxeNtB-QDqghpGDgk7GsR9h7phBsYfW4TePEepUuOgLzU8fUjxoHOH8BK4LXIh_in_h/s1600-h/wincitaly2.png"><img id="BLOGGER_PHOTO_ID_5175004132030222978" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLSKlXgdFujNUKvy8R_xJc5b0ybQNAFuA2SstwV9_ybmeKlbQuvd8zkUKWxZvtzK-k-LNVDjk-FNxeNtB-QDqghpGDgk7GsR9h7phBsYfW4TePEepUuOgLzU8fUjxoHOH8BK4LXIh_in_h/s320/wincitaly2.png" border="0" /></a><br />To stay on the proverbial world stage the US cannot be complacent with its people, policies or its prosperity. The US needs to embrace the change and transformation occurring around the world right down to the tiniest of US towns. That transformation can be simply recognized as “the need to create a better world”. That statement can mean less reliance on oil. That can also mean cleaner water. That can mean removing barriers to accessing education. That can mean feeding the hungry and providing job training and opportunities to the poor. However it’s defined, the notion of a better and more enlightened way of living, doing business, and governing has emerged as a global priority. Call it a social enlightenment period of history or a reflection that what we’re currently doing does not work. Either way a new era of business is upon us, and its time to remove complacency to change out of the equation.<br /><br /><strong><span style="font-size:130%;">So what is a nation in the midst of change to do?</span></strong><br />Be a leader on the world stage, of course. The US can benefit from what so many other foreign corporations and governments have discovered in “World Inc.” already.<br /><br /><strong>1. Rejuvenate with the power of business</strong> – Some of the largest economies of the world are now corporations, not nation states. Business is a powerful driver of change and partner in creating a better world. The responsibility for creating a better world resides not only with the checks and balances of government, but also the ingenuity and infrastructure of business.<br /><br /><strong>2. Celebrate collaboration</strong> - Citizens, business and government need to work together to address critical social, environmental and economic challenges. Without the collaboration of each, solutions will be short term.<br /><br /><strong>3. Accept the fact that small is beautiful</strong> - Principles of efficiency, conservation, security and protection are not counter intuitive to economic growth and development. In fact, in today’s resource constrained world these words are business opportunities for leading companies and opportunities for governments to ensure the needs of society are met today and into the future.<br /><br /><strong>4. Allow capitalism to transform</strong> - Social response capitalism is an advanced form of capitalism emerging like a tsunami. However damage will not be to those in its path, instead this wave will lift up the economies of the world while cleansing what we know about how not to conduct business and past mistakes.<br /><br /><strong>5. Address degradation of global ecosystem services</strong> -<em> Clean Air – Fertile Land – Potable Water</em> are the battle songs for future global conflict if we fail to redefine our values and align our goals domestically and abroad. We need to establish new age public-private partnerships between government, corporations, NGOs, universities and the public if we are to address past environmental damages and prevent any further degradation to ecosystems and their ability to provide us with future utility.<br /><br /><strong>6. Make it a priority to be in-search of a better world</strong> – to address healthcare, energy security, environmental damages, natural resource constraints, education and democracy a renewed commitment to innovation, arts and sciences, philosophy, social sciences, engineering and all disciplines is required. The solution to a better world is not hidden, yet to be discovered, in one disciple. Instead the solution resides in our ability to use frameworks and best practices that involve the intersection of many disciplines so that multiple points of view can be tested and so that the best and brightest of ideas can become innovative solutions to our complex challenges.<br /><br /><strong>7. Get up on the World Inc.</strong> <strong>stage and perform with grace and fascination</strong> – it’s of no use watching the show from the rafters. The nation must be a part of the growing world stage! We need to take part in creating a better world by being a part of a global alliance and solution, not one that polarizes or is blind to others needs.<br /><strong><br /><span style="font-size:130%;">Tell us your thoughts on what else can a nation in political and economic transition can do to embrace change and foster a more sustainable future?</span></strong><br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</span></em></span><span style="font-size:85%;"><br /></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com1tag:blogger.com,1999:blog-9012302507271988727.post-79260594851031755702008-02-21T11:09:00.000-08:002008-12-11T00:47:16.912-08:00“This Land is Your Land, This Land is Our Land”…Just Don’t Take Our Waters<span style="color:#000000;"><strong><span style="font-size:130%;"><em>…“From the Redwood Forest to the Gulf Stream Waters, this Land Was Made for You and Me”…</em><br /></span></strong><br /><strong>Can natural resource rights divide a nation, a world? Unfortunately growing constraints on fresh and potable water are doing just that. And, without more care, courage and commitment from governments, corporations and citizens, our natural resource disputes could be grounds for future conflicts. Already some natural resource debates are being touted as “resource wars” and “civil wars”. Thanks to our democratic society, the resource wars of today are at least being waged in the courtroom. With a growing population and increased drought in <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheTt4yr0aJ_ezIb5znNg-GP7vDx_gAnPJnzqLC9LMugRR0qYyQWPiOvZdzedmc9R2q0yEXRby44uf1VXmctmL7SxkXR-aZ74pWQRfbNVppHVGNZ2KXovJGqWRPT_7w0gfg2cQNDQYmO9-e/s1600-h/Tennesse+River+from+Lookout+Mountain.jpg"><img id="BLOGGER_PHOTO_ID_5169514012215756306" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" height="246" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheTt4yr0aJ_ezIb5znNg-GP7vDx_gAnPJnzqLC9LMugRR0qYyQWPiOvZdzedmc9R2q0yEXRby44uf1VXmctmL7SxkXR-aZ74pWQRfbNVppHVGNZ2KXovJGqWRPT_7w0gfg2cQNDQYmO9-e/s320/Tennesse+River+from+Lookout+Mountain.jpg" width="310" border="0" /></a>certain regions of the US (and world), demand for water is increasing. Currently a new aged battle is being fought in the South where Georgia and Tennessee are head-to-head in a</strong></span><strong> </strong><a href="http://www.csmonitor.com/2008/0215/p02s02-usgn.html"><span style="color:#3333ff;"><strong>water dispute</strong></span></a><strong> </strong><span style="color:#000000;"><strong>dating back to 1818.<br /></strong><br />With drought severely impacting the Southeast US in the past 12-months, particularly the State of Georgia, discussions on water rights have citizens and policy makers boiling. The State of Georgia recently filed a resolution to create the “Georgia-Tennessee Boundary Line Commission” to perform joint surveys of the true boundary line between the adjoining states. Georgia claims that boundary line was erroneously surveyed in 1818 and that the State never fully accepted the survey. Georgia believes the boundary should follow the 35th parallel. If it did, the boundary would move approximately one and a half miles to the north. Not a great distance, however the impact on water rights would be enormous. If the boundary line were changed, millions of gallons of water could be diverted from the</span> <a href="http://www2.una.edu/geography/TN_web/"><span style="color:#3333ff;">Tennessee River</span></a> <span style="color:#000000;">into Georgia. It’s amazing the role geography can play in social, environmental and economic issues. In the case of Georgia and Tennessee even few hundred feet makes the difference between resource rich and resource poor. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIbRqJ_929mJ1TOYgAIY8XKKcgsilr14uaheCHmmZ1tf2ws4ltGIuU-JmCiWNBuJQzCM1T8dbwkFDuvYmPoAD_BOuYH4ftfSjMjwScDo0VRJbbyG0YS9Zk7FXsQELmRGsbYnXK9YOL95D5/s1600-h/Georgia+Tennessee+Boarder.jpg"><img id="BLOGGER_PHOTO_ID_5169514179719480866" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIbRqJ_929mJ1TOYgAIY8XKKcgsilr14uaheCHmmZ1tf2ws4ltGIuU-JmCiWNBuJQzCM1T8dbwkFDuvYmPoAD_BOuYH4ftfSjMjwScDo0VRJbbyG0YS9Zk7FXsQELmRGsbYnXK9YOL95D5/s320/Georgia+Tennessee+Boarder.jpg" border="0" /></a><br /><br />However, the Georgia-Tennessee water war is not simply about who is resource rich and resource poor or who is right and who is wrong regarding land rights, deed restrictions and old surveys. It’s about society’s use of natural resources and our ability to conserve and protect them. It’s also about responsible resource and land management by government, industry and citizens. One thing we can agree upon is that resources, be them water – fossil fuels – forestland – fisheries – certain ores and materials, are being depleted, damaged and threatened as population growth demands more resources for survival and economic growth. This generation, not future generations, but this generation, is in a position to have a lasting impact on our natural resources, how we use them, how we value them, and how we respect them today and for tomorrow. A band-aid approach to solving natural resource challenges has not worked in the past and will not work today. The complexity of social, environmental and economic challenges that envelop our natural resources requires holistic thinking, balanced governance, smart innovation and sound practices and policies to be put in place.<br /><br />Many governments and corporations are now working together to identify natural resource challenges and appropriate (and balanced) solutions to those challenges, particularly the availability of clean and potable water. For example, the Business Roundtable’s Society, Environment and Economy</span> (<a href="http://seechange.businessroundtable.org/Default.aspx"><span style="color:#3333ff;">SEE</span></a><span style="color:#3333ff;">)</span> <span style="color:#000000;">water initiative is a focused effort on improving the quality and availability of water. In its</span> “<a href="http://waterbrief.businessroundtable.org/"><span style="color:#3333ff;">Water Brief for Business (WBFB)</span></a>”<span style="color:#000000;"> the Business Roundtable summarizes three reasons water is a strategic issue for business and society in this new century:<br /><br /><strong>1. Risk</strong> - Freshwater scarcity and threats to water quality are increasing dramatically, both in the United States and across the world – making water one of the leading social, environmental, and economic challenges facing humanity in the 21st Century.<br /><br /><strong>2. Responsibility</strong> - Water presents both a major business risk and an increasingly important corporate social responsibility issue.<br /><br /><strong>3. Social Response</strong> - Businesses can make a big difference in achieving sustainable use of water resources – while simultaneously adding business value.<br /></span><br /><span style="color:#000000;">We commend the Business Roundtable and the SEE water initiative</span> <a href="http://seechange.businessroundtable.org/Directory/"><span style="color:#3333ff;">Corporate Leaders</span></a> <span style="color:#000000;">that are taking swift care, courage and commitment to affect change with regard to emerging water constraints and resource challenges. Corporate <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-hFtpKxFrkPLrpFAZB9ZmNDtBVlezWjcaTRN5DLigvu5dkbGy803mcHmy47r6uEZZByLuoIQa-3PwSKfwnXGvP8Y4YHndHopbFlSAYAGPjZGJThQMeEk-m5WP3hkImL3kdDHiOAipflq8/s1600-h/SEE_indx_wave.jpg"><img id="BLOGGER_PHOTO_ID_5169514394467845682" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-hFtpKxFrkPLrpFAZB9ZmNDtBVlezWjcaTRN5DLigvu5dkbGy803mcHmy47r6uEZZByLuoIQa-3PwSKfwnXGvP8Y4YHndHopbFlSAYAGPjZGJThQMeEk-m5WP3hkImL3kdDHiOAipflq8/s320/SEE_indx_wave.jpg" border="0" /></a>leaders like Alcoa, Coca-Cola, Dow, DuPont, GM, FPL, GE, HSBC, ITT, Office Depot, Siemens, Weyerhaeuser, Xerox (to name a few) are members of the SEE water initiative seeking, in their own right, social response solutions to cleaner water.<br /><br />As we advance through this new century, an abundance of social and environmental challenges are before us. In some instances these challenges will constrain us, in other instances the challenges will inspire use to be innovative and responsive. While we are eager to solve our natural resource challenges through quick fixes, we ultimately know that there is no silver bullet or no one size fits all approach.<br /><br />As the caretakers of our natural world need to redefine our values and boundaries that separate our past with our future. In doing so we must be cognizant of the fact that our resources are precious and that it is our generation whose needs must be met, but that it is our generation who are also the stewards for the future. Let’s shed the boundaries of the past and redefine the role of government, industry and citizens to collaboratively engage in a new era of social responsible enlightenment toward natural resource consumption. </span><br /><span style="color:#000000;"></span><br /><span style="font-size:130%;color:#000000;"><strong>What natural resource issues do you see emerging in the US and the World where geography plays a strategic role, like in the Georgia-Tennessee boundary debate?</strong></span><strong><span style="font-size:130%;"><br /></span><br /></strong><span style="font-size:85%;color:#000000;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</em></span><br /><div><div><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><br /><span style="font-size:85%;">Listen to the Georgia-Tennessee Water Debate at </span><a href="http://www.npr.org/templates/story/story.php?storyId=19096645"><span style="font-size:85%;color:#3333ff;">NPR</span></a><span style="font-size:85%;">.<br />Watch a video clip of the story at </span><a href="http://video.msn.com/video.aspx?mkt=en-us&vid=4e8b5d94-125c-456a-bc4f-fd3c724e072d"><span style="font-size:85%;color:#3333ff;">MSN</span></a><span style="font-size:85%;">.</span></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-71915028418452368342008-02-11T08:16:00.000-08:002008-12-11T00:47:18.189-08:00Social Response Capitalism Unveiled: How Siemens is Greening Corporate America, and the World, through New Product Innovation in Built Environments<strong><span style="font-size:130%;"><span style="color:#000000;">Based out of Buffalo Grove, Ill, Siemens Building Technologies, Inc. might as well be called Sustainability Inc. The company is a bustling provider of energy and environmental solutions, building controls, fire safety and security system solutions. Siemens Bu<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjH9gZn3eZVFoIAI3JmjfF1egpQzRPsDj91qIl_NYiIK_4XNelrzQbqh1aZR5ABVKA0uSQz5Xir8a3P-m8h9gussZb3x56L_W-LjI-5_LZaqXKUFPYw5TP0n-d88733JtJM-stLmtX-rmdT/s1600-h/Wright+House.jpg"></a>ildings Technologies, Inc. makes buildings comfortable, safe, productive, energy efficient and less costly to operate. Parent company</span> </span></strong><a href="http://w1.siemens.com/entry/cc/en/"><span style="font-size:130%;color:#3333ff;"><strong>Siemens AG</strong></span></a><strong><span style="font-size:130%;"> </span></strong><span style="color:#000000;"><strong><span style="font-size:130%;">is one of the largest electronics and industrial engineering firms<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhypbJTvkA9pOoIs1ZzQHoSkEa_IKZPhofBPayVfSOydfjWHzjvdA-3BINlgxpFrLYl6ry-b8nHxCFuHPUpDiu0UvdWR4DD9LNPALau0gNabA7O1qIP4h-izP80Gh6n-ojnDdVU8lAd_eY8/s1600-h/FLW.jpg"><img id="BLOGGER_PHOTO_ID_5165759858611733954" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 289px; CURSOR: hand; HEIGHT: 239px" height="248" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhypbJTvkA9pOoIs1ZzQHoSkEa_IKZPhofBPayVfSOydfjWHzjvdA-3BINlgxpFrLYl6ry-b8nHxCFuHPUpDiu0UvdWR4DD9LNPALau0gNabA7O1qIP4h-izP80Gh6n-ojnDdVU8lAd_eY8/s320/FLW.jpg" width="299" border="0" /></a> in the world. Reporting more than $112 billion in sales in 2007 Siemens AG is a global giant employing more than 390,000 employees worldwide with operations in 190 countries.</span></strong><br /><br />To support new market access and continued competitive growth this global giant is also an innovation leader. Siemens has 50,750 patents worldwide and in fiscal year 2007 the firm spent more than $3.4 billion on R&D. Strategic</span> <a href="http://w1.siemens.com/innovation/en/index/r_d_topics/index.htm"><span style="color:#3333ff;">R&D topical</span></a> <span style="color:#000000;">pursuits for Siemens include: technology for the environment, digital health, the thinking car, intelligent networking, personalization, remote services, elements of life, always-on-society, software, sensor technology, clean energy, materials research, new light sources, medial imaging, robotics and agents, usability, factories of the future, and logistics.<br /><br />Without even exploring each of these R&D topics in depth one can begin to see the depth and breadth of Siemens innovation pursuits as well as how the firm is positioning its future products with social and environmental needs including environmental management, energy efficiency, healthcare, resource conservation, and global connectivity. Siemens Building Technologies, for <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIs2zFw87oVa2wufkaLf4489xEZgTnQjhs6ywbBu2Jm6KbYeaMoC1WZnWmxFIfj5omxjTnGPUmed_gJHHwf_feorgRB82BsStL7jmav6fF_yamwMxP6P54p67KKqXjLQrGr5d-z1Ds5lzE/s1600-h/greenbuild1.jpg"><img id="BLOGGER_PHOTO_ID_5165760206504084946" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIs2zFw87oVa2wufkaLf4489xEZgTnQjhs6ywbBu2Jm6KbYeaMoC1WZnWmxFIfj5omxjTnGPUmed_gJHHwf_feorgRB82BsStL7jmav6fF_yamwMxP6P54p67KKqXjLQrGr5d-z1Ds5lzE/s320/greenbuild1.jpg" border="0" /></a>example, is looking at the building retrofit and new build markets as opportunity for innovation and social response through energy efficiency, smart sensor technology and new sources of lighting and intelligent networking. Data from McGraw-Hill and Siemens shows that corporate America may be at a “green building tipping point”, and that a technological and social transformation is underway in how corporations do business.<br /><br /><strong><span style="font-size:130%;">The Tipping Point for Green Buildings</span></strong><br />In 2007 a McGraw-Hill Construction study, commissioned by Siemens Building Technologies, Inc., reported out on the “attitudes of corporate leaders toward sustainability and green building”. The study relied on interviews and surveys with close to 200 corporations with revenue exceeding $500 million. The McGraw-Hill </span><a href="http://www.csrwire.com/News/8383.html"><span style="color:#3333ff;">Siemens study</span></a> <span style="color:#000000;">reported the following insights:<br /><br />· 63 percent of CEOs recognize financial benefits of green building.<br />· 67 percent see a specific operating cost benefit from <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9g-dUageqssWzVPuEj1WvLrvzmkeKWG8H9BtQ_2mqFOPw5DZp2KxMgcDC898VS7qd42Y4zpmUrQhnUts39WDA7HtHK7Yu36dLDx86WvwdSJJkw9J5oZGrFt9N7MkXlSXHt_nNZr55t86G/s1600-h/Siemens1.png"><img id="BLOGGER_PHOTO_ID_5165760429842384354" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9g-dUageqssWzVPuEj1WvLrvzmkeKWG8H9BtQ_2mqFOPw5DZp2KxMgcDC898VS7qd42Y4zpmUrQhnUts39WDA7HtHK7Yu36dLDx86WvwdSJJkw9J5oZGrFt9N7MkXlSXHt_nNZr55t86G/s320/Siemens1.png" border="0" /></a>Green.<br />· 57 percent of respondents think green fosters innovation within their companies.<br />· 60 percent of CFOs see the market differentiation sustainability activities and green building can provide their companies as a definite benefit, with over half of the other executive respondents agreeing as well.<br /><br />These findings are significant, and Siemens believes they point to a green building “tipping point” among American corporations. Although there are many drivers impacting the transformation of Corporate America to greener pastures, rising energy costs were identified by more than 75 percent of the McGraw-Hill and Siemens survey participants as a major motivator for building or retrofitting buildings with more energy efficient technologies and green building solutions.<br /><br />In the US buildings account for approximately 65% of total US electricity consumption, 36% of total US primary use, 30% of total US greenhouse gas emissions, 136 million tons of US construction and demolition waste (about 2.8 lbs. per person per day), 12% of potable water, and<br />40% of annual raw materials use globally (3 billion tons). Most all corporations operate and maintain buildings as part of their daily business. Driven by the cost of energy and growing concern over the influence of carbon on future business risks, design and development of “green buildings” has emerged as a business strategy and sustainability objective. Every sector of society (businesses, universities, governments) are looking at greening their buildings as a way to reduce operating costs, reducing their carbon footprint, creating a competitive edge, and delivering more value to their bottom line and to their stakeholders. For many, carbon will either be a cost or revenue stream in the future. Thus organizations need to understand their carbon footprint in relation to their competitors, industry sector and society. Most firms are doing this by inventorying their greenhouse gas (GHG) emissions for all segments of their operations. And smart firms are beginning to assess “what stage of sustainability” they are in, and how to improve.<br /><br /><strong><span style="font-size:130%;">Five Stages of Sustainability<br /></span></strong>I recently listened to Rick Walker, Manager of Sustainability Initiatives for Siemens Building Technologies, Inc. outline what he termed the “Five Stages of Sustainability” at a private </span><a href="http://www.ahcgroup.com/workshop_2008jan_agenda.htm"><span style="color:#3333ff;">Leadership Benchmarking Workshop</span></a> <span style="color:#000000;">facilitated by the AHC Group, Inc. in Phoenix, Az. Mr. Walker identified the following Five Stages: <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvxTBYN9CgQf-o-ZFWa5oVVYbYRgcl4OeU1KOygGivhABn3y9TSfs6nOX55deZeNZiZVsYwMdxM58vlhsZ-U3ud94uHjI6NeMESfRo70jkHAgqiu334_Ybcn1oYdMNOvF7YshmxgCh5QVa/s1600-h/Siemens_Logo.jpg"></a><br /><br /><strong>Stage 1</strong> - Green not part of the company mission<br /><br /><strong>Stage 2</strong> - Green enters into the company mission as it is legally required<br /><br /><strong>Stage 3</strong> - The company considers the proactive application of Green to be consistent with the profit mission<br /><br /><strong>Stage 4</strong> - The company transforms into a Green organization. Green is viewed more as an opportunity than a cost<br /><br /><strong>Stage 5</strong> - The company approaches business as a holistic, restorative company<br /><br /></span><span style="color:#000000;"></span><p align="left"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizg5aLC6b4-h_bgJcS6ldHDics81wu4AHniEhqb9kz660VuHO_Bl1UE_7xtLQ__3nSj-Ri6hWLd9OMrFnd0ZzN-n5dhBi3K9vpH4jK6MGiYrGOGQyYZzdSBdUf2RmzpfgsN7HBJhFiwHJg/s1600-h/siemens2.jpg"><img id="BLOGGER_PHOTO_ID_5165761344670418434" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizg5aLC6b4-h_bgJcS6ldHDics81wu4AHniEhqb9kz660VuHO_Bl1UE_7xtLQ__3nSj-Ri6hWLd9OMrFnd0ZzN-n5dhBi3K9vpH4jK6MGiYrGOGQyYZzdSBdUf2RmzpfgsN7HBJhFiwHJg/s320/siemens2.jpg" border="0" /></a></p><p><span style="color:#000000;">The majority of companies are in stages 1, 2 and 3. And fewer companies have entered into stages 4 and 5. Companies that we study at AHC Group, Inc. are in all Five Stages of Sustainability as defined by Siemens, but we typically report on those companies that clearly fall in Stage 4 and 5 as they’ve typically developed internal management practices, governance policies, reporting structure and operational strategies for sustainability within their organizations and often, within their supply chains and internal/external partnerships. In addition, the companies we see in Stage 5 usually have an enlightened sense of the near future and an intelligence and innovation infrastructure that allows them to rapidly sense market needs and deliver new products that have social and environmental consequence more competitively than firms that have not yet arrived to Stage 4 or 5.<br /><br />Another compelling insight of Stage 4 and 5 firms is the use of internal and external “Sustainability, Environmental Leadership, or Green” Committees. The members of these committees typically consist of all segments of the organization (finance, sales/marketing, product/service development, legal, facilities management, risk management, HR) and at decision making levels. Companies/organizations including LP Corporation, Siemens, USDOD, HSBC, and Mitsubishi have internal committees that report through a governance structure to their respective executive committees. Internal “sustainability” committees are the eyes, ears and mouth for the company. They communicate the vision and mission sustainability roadmap to internal and external audiences. They listen to internal and external stakeholders on needs and requirements. They seek to coordinate the design and implementation of sustainability strategies internally and externally. And they seek to build trust and reputation through transparency and visibility of how sustainability strategies are developed and implemented as well as the overall “sustainability performance” of the organization.<br /><br />Amid the evolution of “sustainability and green” committees has been the slow metamorphosis of the “Chief Sustainability Officer (CSO)” for many leading firms. The CSO has emerged as the internal champion for sustainability initiatives, but more than that, we find CSO’s to be revenue generators and responsible for overall risk management. For more insight on the emerging roles of CSO’s and those firms in Stages 4 and 5 please see</span> <a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.</span></a><span style="color:#3333ff;"><br /></span><br /><span style="color:#000000;"><strong><span style="font-size:130%;">Staging the Transforming Within Your Organization</span></strong><br />Mr. Walker’s presentation and summary of the “Five Stages of Sustainability” encapsulated the idea that sustainability is a continuum as well as a process of transformation for businesses, governments and consumers. Sustainability is not something that can be delivered to a company’s doorstep in a UPS box, opened and installed. Instead, sustainability has to be studied, defined, embraced, implemented and measured by each organization. The corporate trend toward sustainability involves elements of social, technological, and business transformation. Thus corporations, governments and consumers alike will discover what sustainability means to them and how much emphasis to place immediately or over a longer term on transformation and going through the stages of sustainability.<br /><br />As you begin or continue your journey of sustainability, keep in mind firms like Siemens that have much to offer by way of tools, technologies and services that can aid in your organizations transformation. As the cost of energy and collision of carbon on business risks elevate discussions of sustainability within your organization consider the following questions to help you navigate your course: </span></p><p><span style="color:#000000;"><strong>Strategy & Roadmap Development</strong><br />· What stage of sustainability is our organization in? What are the practical solutions oriented strategies we can develop and deploy to continue our journey toward the next stage?<br />· Has our organization established strong pillars of sustainability: vision and mission, roadmap and implementation strategy/plan, an open learning environment and a way to inventory, measure and report out on progress/goals?<br />· Do we have an existing “sustainability or green” strategy and roadmap?<br /><br /><strong>Commitment & Communication<br /></strong>· Because “green” and “sustainability” are philosophies that organizations adopt and a journey each organization takes, there needs to be commitment from all stakeholders, internal and external (from executive management to vendors and customers). Has our organization communicated its philosophy for “sustainability” to stakeholders and been granted their commitment to see it through?<br />· Do we have an internal “sustainability or green” committee that overseas the strategy roadmap and implementation? Has the committee developed a vision, mission and goals for the strategy roadmap?<br />· Has top level support for the strategy roadmap been achieved? Have operational level personnel been educated and involved in the strategy roadmap development?<br />· Is our strategy communicated at all levels of our organization and to our partners, suppliers, customers? Do our employees, vendors, suppliers, customers know what is expected of them?<br />· Do our stakeholders know the performance of our strategy? Has it been communicated to them successfully?<br /><br /><strong>Competitive Differentiation</strong><br />· What is unique or different about our organizations’ strategy? Compared to competitors, compared to other industries?<br />· Have we evaluated our product and service impacts and how to innovate better?<br />· Do we have the need for a cross functional CSO that is an internal enabler for governance, environmental/operational excellence, design of environmentally benign products/services and risk reduction?<br />· What is the carbon footprint of our buildings/facilities? Does our carbon footprint matter relative to our peer companies? How can we reduce our carbon footprint at our facilities, fleets, purchasing and other business units?<br /></span><span style="color:#000000;"><strong><span style="font-size:130%;"></span></strong></span></p><p><span style="color:#000000;"><strong><span style="font-size:130%;">The road to sustainability is not yet paved. In fact it has barely been scouted. As you chart a path toward the destination that most suits your business, products, organizational culture and industry sector remember that sustainability is a journey. The journey is rich with opportunities, but also risks. So chart your course with care, and where possible, learn from other leaders that have, like Siemens, much to offer by way of social response intelligence and innovation.<br /></span><br /><span style="font-size:130%;">Tell us about the challenges and opportunities you’re experiencing during your journey to sustainability.</span></strong><br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a></p>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-49993800198086701622008-02-06T06:55:00.000-08:002008-12-11T00:47:18.832-08:00Managing Carbon Risk in High Seas<span style="font-size:130%;color:#000000;"><strong>Like the “Electrifying” Discoveries of Ben Franklin 250 Years Ago, Innovative Marine Shipping Companies Are Experimenting with Flying Kites to Deliver a Social Response to Contemporary Business Challenges in the Shipping Industry</strong></span><br /><br /><div><div><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIwiWNC7D-YlOQmcS_wNKnnrhGrxAXPxIbk8102a6Az0_axTp4_yqYW0jeVx3-JKmPeQIQWKSOkcdaLGgw3rCQfcY1SQiCMphEI3CWsZPrS2wVW86LJB6Kc5dKZnwCot_D38i2LUpCB2Pl/s1600-h/franklin2.gif"><img id="BLOGGER_PHOTO_ID_5163882824449719650" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIwiWNC7D-YlOQmcS_wNKnnrhGrxAXPxIbk8102a6Az0_axTp4_yqYW0jeVx3-JKmPeQIQWKSOkcdaLGgw3rCQfcY1SQiCMphEI3CWsZPrS2wVW86LJB6Kc5dKZnwCot_D38i2LUpCB2Pl/s320/franklin2.gif" border="0" /></a> <span style="color:#000000;">It was June 1752 and one of the Founding Fathers of America began an experiment to see if lightening was actually electricity by flying a kite into a thunder storm. That prolific leader, a well known inventor, scientist, author, politician, civic activist and diplomat was Benjamin Franklin. Franklin’s kite flying experiment which set out to prove that lighting had electricity “energy” was an influential, as it led to the invention of the lightening rod.<br /><br />Two hundred and fifty-six years later a German shipping company named the</span> <a href="http://www.beluga-group.com/"><span style="color:#3333ff;">Beluga Group</span></a> <span style="color:#000000;">has experimented with using a kite to use the power of the wind to reduce oil consumption on board its massive shipping vessels. In December 2007 the 10,000-ton 'MS Beluga SkySails' set its maiden voyage route from Bremerhaven, Germany, to Venezuela. But instead of relying solely on its petro-based engine to power its course, the MS Beluga SkySails used a 320 square meter sail to reduce its petro-consumption by relying on the force and grace of the wind, like early ocean going pioneers travelled hundreds of years ago. Like Franklin’s experiment of 1752, the Beluga SkySails is a new age experiment using technology as old as the kite, but still as innovative as it is applied to a new era of energy challenges.<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFTcThwKlF9NFlpV7LP_pnoibUuOjo8gf3P8oo68yprDyvrTW0oyih-oN67uzMh42vE3zAtaLvuK-WiNTQBdNF58N6yiyAPiSEbK9PUPlNsgpX4gLHFbo9zd4N0dhmCm7pp9uhcdWtNuMD/s1600-h/SkySails.jpg"><img id="BLOGGER_PHOTO_ID_5163884877444087154" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFTcThwKlF9NFlpV7LP_pnoibUuOjo8gf3P8oo68yprDyvrTW0oyih-oN67uzMh42vE3zAtaLvuK-WiNTQBdNF58N6yiyAPiSEbK9PUPlNsgpX4gLHFbo9zd4N0dhmCm7pp9uhcdWtNuMD/s320/SkySails.jpg" border="0" /></a><br />The Beluga Group estimates that 20% or $1,600 of the daily fuel bill can be reduced by using its large kite. If the first maiden voyage from Germany to Venezuela proves successful the company intends to increase the size of the kite to 600 square meters and deploy them on its fleet of 1,500 oceanic vessels.<br /><br />The price volatility of oil, increased corporate financial and reputational risks surrounding climate change and carbon, and cost of transportation have influenced Beluga Group’s decision to integrate the kite concept with their shipping vessels. According to</span> <a href="http://www.msnbc.msn.com/id/22788488/from/ET/"><span style="color:#3333ff;">REUTERS</span></a>,<span style="color:#000000;"> “…the world's 50,000 merchant ships, which carry 90 percent of traded goods from oil, gas, coal, and grains to electronic goods, emit 800 million metric tons of carbon dioxide each year. That's about 5 percent of the world's total. Also, their fuel costs rose by as much as 70 percent last year...”.<br /><br />According to researchers at</span> <a href="http://www.rit.edu/news/?v=45889"><span style="color:#3333ff;">Rochester Institute of Technology</span></a> <span style="color:#000000;">(RIT), pollution from the marine shipping industry contributes to 60,000 premature cardiopulmonary and lung cancer deaths around the world each year. The RIT report, “</span><a href="http://pubs.acs.org/cgi-bin/abstract.cgi/esthag/2007/41/i24/abs/es071686z.html"><span style="color:#3333ff;">Mortality from Ship Emissions: A Global Assessment</span></a><span style="color:#000000;">” was released just as the International Maritime Organization (IMO) began meeting to discuss how to regulate emissions from the marine shipping industry.<br /><br />Calling the</span> <a href="http://www.beluga-group.com/News.345.0.html?&cHash=8d7c34a750&tx_ttnews%5btt_news%5d=505"><span style="color:#3333ff;">“Beluga SkySails”</span></a> <span style="color:#000000;">an “innovative auxiliary propulsion system” Niels Stolberg, CEO of the Beluga Group noted, “…you have to have the courage to try out something new”. The Beluga Group also states, “…application of the towing kite propulsion system points to a sustainable way out of direct dependence on the oil price. Furthermore, the MV “Beluga SkySails” even combines ecology and economy on the high seas.” <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPMXN3LjJ2Cdu2e3rxsBIK-IaJE9najlv1eB5uyx3BIw_FTiyVJehoTn1bI11JWqKGArV8WvOQfUOcc6APCF3xlGEJFxXhHYnKSgAUmELjyNKJuCr-RjIWa0awDb7X1D3tIfZnKKFUnYoP/s1600-h/beluga+skysails.jpg"><img id="BLOGGER_PHOTO_ID_5163885448674737538" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPMXN3LjJ2Cdu2e3rxsBIK-IaJE9najlv1eB5uyx3BIw_FTiyVJehoTn1bI11JWqKGArV8WvOQfUOcc6APCF3xlGEJFxXhHYnKSgAUmELjyNKJuCr-RjIWa0awDb7X1D3tIfZnKKFUnYoP/s320/beluga+skysails.jpg" border="0" /></a><br /><br />The Beluga SkySails propulsion system is a hybrid, taking the best of the old and integrating it with the best of the new to create a truly unique way to continue its maritime shipping operations in our fast paced 24-7 in a world that is also constrained by carbon and health impacts of an oil-dominated economy. In providing a</span> <a href="http://www.ahcgroup.com/res_art_cst10d.htm"><span style="color:#3333ff;">social response</span></a> <span style="color:#000000;">service upgrade to its operations, Beluga stands to win credibility, reputation and market access from those seeking lower carbon risk shipping methods.<br /><br />Even at the high seas, innovative applications to conserve energy, integrate economics with ecology, reduce climate/carbon risk and enhance corporate reputation and product/service offerings are well underway. It’s an exciting world, with a rich mix of new and old intersecting toward new paradigms for business growth.<br /><br /><span style="font-size:130%;"><strong>Share with us your thoughts on the Beluga SkySails social response to energy and emissions, and your views on how others firms are merging old concepts with new innovations to create positive environmental, economic and social impacts.<br /></strong></span><br /><span style="font-size:85%;"><em>Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.</em></span></span><br /><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a></div><div></div><div></div></div><br /><br /><em><span style="font-size:85%;">To see a video stream of the Beluga SkySails: </span></em><a href="http://www.wintecc.de/video_en.html"><span style="font-size:85%;color:#3333ff;"><em>http://www.wintecc.de/video_en.html</em></span></a>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-29879609467619326042008-02-03T12:27:00.000-08:002008-12-11T00:47:19.796-08:00Tough Challenges in a Complex World: Why A Focus on New Product Development and Innovation is a Business Requirement for this New Century…<span style="color:#000000;"><strong>As local and global economies collide, the complexities of the world present new and tough challenges for business.</strong> Once thought of as emerging issues, there are a slew of challenges that have risen to the top of the daily agendas for businesses, governments and citizens. Consider these 21st Century issues of consequence: <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWKo-VPfrlE3FEpJwN5GqbuBjV6oRttgMMtB2_OiWn-nAaBK3dm3bPl5P1d8E7Mjr-DDtPyldM-1yQJHpdecai70T-GiFJhFWb5omROS5bzRKjMIBmGx6L4_hY_d3jxshSnjEnnKHuxfS8/s1600-h/decision.jpg"><img id="BLOGGER_PHOTO_ID_5162859411052494130" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWKo-VPfrlE3FEpJwN5GqbuBjV6oRttgMMtB2_OiWn-nAaBK3dm3bPl5P1d8E7Mjr-DDtPyldM-1yQJHpdecai70T-GiFJhFWb5omROS5bzRKjMIBmGx6L4_hY_d3jxshSnjEnnKHuxfS8/s320/decision.jpg" border="0" /></a><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj831zWm3sNiZchMzhablAa8gnujPVee1qcNKmJSo2-0-ETaKpwsrattUEpK4dd4qdFAKMa_Pftrsdm5CupQQZpvgHnODUWtPEOKKM7xlhC6Z3raO_gNSu5_VHGfqPp0jaybDdpjg7oQUn0/s1600-h/delta2.jpg"></a><br />· Concern over climate change and appropriate government and business response.<br />· Concern over the availability and cost of energy.<br />· Concern over the availability of natural resources and environmental damages.<br />· Concern over increased potential for global pandemics.<br />· Concern over terrorism and asymmetrical warfare.<br />· Concern over social needs, human rights and product pedigree.<br />· Concern over the globalization of business and its impact on society, environment and economy at local and global levels.<br /></span><br /><span style="color:#000000;">These concerns are being addressed by businesses in unique and innovative ways. This past January I met and participated in discussions with 88 global corporations in Phoenix, Arizona as part of the AHC Group’s ongoing Corporate Affiliates Workshop Series focused on its signature</span> <a href="http://www.ahcgroup.com/workshop_2008jan.htm"><span style="color:#3333ff;">leader-to-leader</span></a> <span style="color:#000000;">benchmarking for corporate strategy. The 2-day executive workshop yielded for me, another intriguing look inside the drivers of corporate strategy and how leading firms are addressing issues of consequence to their customers, employees, suppliers and shareholders. One of the major themes that surfaced rapidly among several firms was the level at which they respectively are dealing with business risks like carbon, climate change, natural resource and material availability, employee health and safety and product pedigree.<br /><br /></span><span style="color:#000000;">From my perception the leading firms are focusing not on “green branding” of products but a well conceived internal effort to innovate new <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0uxaWt09yV2uoS3DlM7CVuWliSASGJ12cmSaa3hkjDDCssD5aHREB-unrKep5u2svG7dKQ-5ZLyOObIze2hlar4OL_E_DTfq9kA7SfgYRpmyJgOM7KJUQcsf7hNjMMQkrQ81T8iMpOUA9/s1600-h/delta1.jpg"><img id="BLOGGER_PHOTO_ID_5162858822641974562" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0uxaWt09yV2uoS3DlM7CVuWliSASGJ12cmSaa3hkjDDCssD5aHREB-unrKep5u2svG7dKQ-5ZLyOObIze2hlar4OL_E_DTfq9kA7SfgYRpmyJgOM7KJUQcsf7hNjMMQkrQ81T8iMpOUA9/s320/delta1.jpg" border="0" /></a>products and services that can reduce their business risks and deliver value to their firms’ bottom line and corporate reputation. The issue of product claims and legitimacy is very important for leading firms, thus they are not riding a “green wave of optimism” for the sake of being perceived as a green company. Rather, most firms are looking at their technology, employee and product strengths as well as partnerships and identifying opportunities for innovation. And in most cases the new innovation is based on a business risk turned into opportunity. Leading companies are seeking market access and leveraging their expertise to create new businesses that begin to address complex social and environmental challenges like carbon reduction, energy efficiency or end-of-life product reclamation, reuse, recycle or remanufacturing.</span><br /><br />In the short case example below I highlight how IBM is focusing on new products and innovation for solving tough challenges in this complex world. While IBM was not part of the 88 firms I learned from at the AHC Group workshop in Phoenix, their approach to new products and innovation is similar to what’s happening at some of the largest electric utilities, building products, energy, chemical, manufacturing, computers/electronics, defense and aerospace, consumer products and healthcare/pharmaceutical companies of the world.<br /><br /><span style="color:#000000;"><strong><em>An Innovation Business Machine – From Eco-Patents to Big Green Innovations, IBM is building on its technology portfolio to capitalize on social needs.</em></strong></span><br /><br /><span style="color:#000000;">Perhaps IBM should be called Innovation Business Machine. With a commitment to bring “game changing” innovation to market, the $91 billion giant is delivering on its promises. In December 2007 IBM announced</span> <a href="http://www-03.ibm.com/press/us/en/pressrelease/22683.wss"><span style="color:#3333ff;">Five Innovations that Will Change Our Lives Over the Next Five Years.</span></a> <span style="color:#000000;">Among those five innovations were “smart energy technologies” that will allow consumers to better manage their personal “carbon footprint” through intelligent appliances and smart electric grids.</span><br /><br /><span style="color:#000000;">On February 1, 2008 IBM announced the creation of its “Global Center of Excellence for Water Management” in Amsterdam, the Netherlands. Focusing on two global business risks, climate change and water, the center of excellence will draw on “…IBM consulting, <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqiFOgDU1NFgh-Vp5Mg129tUDwWwOLW1BXra-n5Hnber3lkg4shcnw99B9Y8s6_G_Jw7N0-YncTdY7upeNaBchzY_A3t60xx9bRnGR3pvBgY3vpZLCb-Q_EcTRFQlFacUhQjqEOBN-pSG0/s1600-h/ibmgreen.jpg"><img id="BLOGGER_PHOTO_ID_5162856426050223362" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqiFOgDU1NFgh-Vp5Mg129tUDwWwOLW1BXra-n5Hnber3lkg4shcnw99B9Y8s6_G_Jw7N0-YncTdY7upeNaBchzY_A3t60xx9bRnGR3pvBgY3vpZLCb-Q_EcTRFQlFacUhQjqEOBN-pSG0/s320/ibmgreen.jpg" border="0" /></a>technology and research expertise, and will help IBM's public sector clients worldwide to develop enhanced prediction and protection systems for low-lying coastal areas and river deltas.” The IBM</span><span style="color:#3333ff;"> </span><a href="http://www-03.ibm.com/press/us/en/pressrelease/23427.wss"><span style="color:#3333ff;">Center of Excellence</span></a> <span style="color:#000000;">will help the more than 60% of the world’s population that live in coastal and low-lying delta regions and that may be impacted by climatic influences on water in those regions.<br /><br />IBM’s Center of Excellence is part of its</span> <a href="http://www-03.ibm.com/technology/greeninnovations/index.html"><span style="color:#3333ff;">Big Green Innovations</span></a> <span style="color:#000000;">initiative which is focusing on commercializing new products and services across four strategic areas: advanced water management, alternative energy, carbon management and computational modeling. Each of these four targeted areas stems from an </span><a href="http://www-03.ibm.com/technology/greeninnovations/pdf/IBM_Big_Green_Innovations_Overview.pdf"><span style="color:#3333ff;">existing core IBM technology.</span></a> <span style="color:#000000;">For example, one of IBM’s ‘big green innovation’ ideas is for advancing the energy efficiency of large data centers through its collaboration in</span> <a href="http://www.thegreengrid.org/home"><span style="color:#3333ff;">the Green Grid</span></a>.<br /><br /><span style="color:#000000;">IBM has committed an investment of $100 million toward its ‘Big Green Innovations’ initiative and collaborative. With a focus on emerging environmental management opportunities, IBM developed its ‘Big Green Innovations’ initiative as a platform to design and develop products and services (and 10 new businesses) that address global environmental and social challenges in what they call “the latest step in a journey that began 35 years ago”.<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCxFuKD3T5JgXgZRhPUc241kSb5IwE8CD4vKmXHQWS6IUaWLyFTneFIgllXD-ZPoqu-kXELaOT3N-U_k7w83iadrpROM8z2d81W7Mr3q8v_Y2Gy9bgx9_fDP5VIJAe0YTRx3jCLibBW6N2/s1600-h/ibmgreen2.jpg"><img id="BLOGGER_PHOTO_ID_5162856722402966802" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCxFuKD3T5JgXgZRhPUc241kSb5IwE8CD4vKmXHQWS6IUaWLyFTneFIgllXD-ZPoqu-kXELaOT3N-U_k7w83iadrpROM8z2d81W7Mr3q8v_Y2Gy9bgx9_fDP5VIJAe0YTRx3jCLibBW6N2/s320/ibmgreen2.jpg" border="0" /></a><br />Continuing its theme on green innovation, IBM recently announced its</span> <a href="http://www.ibm.com/ibm/environment/news/ecopatent_announce08.shtml"><span style="color:#3333ff;">Eco-Patent Commons</span></a> <span style="color:#000000;">initiative, a program designed to provide the public domain access to dozens of environmentally responsible innovative patents developed by leading corporations. The intent in providing the public access to these patents is to spawn a new era of ingenuity, innovation and development of new products and services that also have a social and environmental purpose. IBM announced the Eco-Patent Commons initiative with the World Business Council for Sustainable Development (WBCSD). In addition, several peer-corporate leaders are a part of the IBM Eco-Patent Commons initiative including Nokia, Pitney Bowes and Sony. By sharing innovations within the public domain these leading corporations seek to enhance and accelerate sustainable development in a resource constrained world. Membership in the Eco-Patent Commons initiative is open to all individuals and companies pledging at least one patent. More information is available at the Eco-Patent Commons</span> <a href="http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&MenuId=MTQ3NQ&doOpen=1&ClickMenu=LeftMenu"><span style="color:#3333ff;">website</span></a> <span style="color:#000000;">hosted by the WBCSD.</span><br /><br /><span style="color:#000000;">IBM’s Eco-Patent Commons initiative is just the type of innovation that environmental business expert Bruce Piasecki uncovers and examines in depth in his book, </span><a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.: When it Comes to Solutions - Both Local and Global - Businesses Are Now More Powerful Than Government</span></a>. <span style="color:#000000;">Piasecki notes, <em>“Fifty-one of the world's top 100 economies are now corporations, and more than 40% of world trade now takes place within multinationals. As power moves into the hands of corporations, the world is looking to business instead of government to solve its problems. The corporations that can best address social issues by creating superior products will thrive and profit in this new world.”<br /></em><br />As one of the larger corporations in the world IBM seems to be using its power and influence to solve social and environmental challenges in partnership with other peer companies and leading organizations like the WBCSD. IBM seems to have launched its product, service and R&D portfolio into what Piasecki calls “social response capitalism” a new and advanced form of capitalism that delivers shareholder value on product performance, quality and price but also a 21st Century requirement for all corporations – value toward society and social needs.<br /></span><br /><span style="color:#000000;">Forward thinking partnerships “<em>on sharing ideas for the greater social and business good</em>” like IBM’s Eco-Patent Commons are rapidly becoming the new turf on the expanding playing field by which fortunes will be won or lost and as both shareholder and stakeholder value is created by business. </span><br /><br /><div><div><div><div><div><span style="color:#000000;"><strong><span style="font-size:130%;">What firms, like IBM, do you see as new social response product development and innovation leaders of market and global consequence tackling global carbon, climate, resource and health risks?<br /></span></strong></span></div><br /><div><span style="color:#000000;"><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a> </div></div></div></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-51765670472045994992007-11-21T07:54:00.000-08:002008-12-11T00:47:21.207-08:00Giving Thanks to Those Companies Going Green<span style="color:#000000;"><strong><span style="font-size:130%;">As you travel, spend time with family, and go shopp</span></strong><strong><span style="font-size:130%;">ing this holiday season think about giving thanks to the companies that are creating a more sustainable world by going green. Whether you’re reducing your carbon footprint by traveling in a Boeing 787 Dreamliner or Toyota Camry hybrid to your holiday destination, shopping for greener products at Wal-Mart on<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDme3jCHnRNduWvSkqRF8xhzsUkfbEeQWBZx9htOsXuSXXi_vmf2uF8rMkJ_KacrSGERJYlYAsIJfqTj1NTOmAjkJsAfsNbIsPv9lifxvD4fD5MwOCctwOk-0tKy3BgwFnlYrFk8cfKr3Q/s1600-h/fall7.jpg"><img id="BLOGGER_PHOTO_ID_5135323060601912978" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDme3jCHnRNduWvSkqRF8xhzsUkfbEeQWBZx9htOsXuSXXi_vmf2uF8rMkJ_KacrSGERJYlYAsIJfqTj1NTOmAjkJsAfsNbIsPv9lifxvD4fD5MwOCctwOk-0tKy3BgwFnlYrFk8cfKr3Q/s320/fall7.jpg" border="0" /></a> black Friday, or reducing your winter energy costs with new products from LP Corp., this holiday season has many greener product and service options available to save you money and feel good about your purchase decisions.<br /></span></strong><br />It’s the week of Thanksgiving and almost incredible to believe how fast time has seemed to be flying by toward this end of the year. In this pre-holiday blog I give thanks to just a sample of the global giants doing good by doing well as they have led the charge in social response capitalism. However, there are much more examples of social response corporate leaders on the horizon. In 2008 there will be new partnerships, new companies, new products and new disclosures on who is leading the</span> <a href="http://www.ahcgroup.com/res_art_cst10d.htm"><span style="color:#3333ff;">social response capitalism</span></a> <span style="color:#000000;">revolution. What’s significant about some of the companies I’m going to present is that they represent the world’s largest automaker, retailer as well as giants in the aerospace, renewable energy, food and beverage and building products industry.<br /><br />Let me begin by identifying a short list of firms to give thanks to:<br /><br />1. Boeing<br />2. Toyota<br />3. Tyson Foods<br />4. Pepsi<br />5. Sterling Planet<br />6. Wal-Mart<br />7. LP Corp.<br /><br />Because travel is on the minds of so many who are taking a plane or driving long distance this holiday season let me begin with two giants, Boeing and Toyota. Boeing has found success with its</span> <a href="http://www.boeing.com/commercial/787family/index.html"><span style="color:#3333ff;">787 Dreamliner</span></a> <span style="color:#000000;">aircraft. A plane that is 20 percent more fuel efficient than similar sized planes, the Boeing 787 Dreamliner also has 20 <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjG1p7cuhyphenhyphenjGd3Q7wXH-gSQ4Ys4SnCAnvegwjE9Sl-Nx7GKAIqf5Khxa-S4lBW_ZKAnbZyC6_9nxhMNomvFn9ahm0unOXpD0D5opxMD1zz7N3rzVG0wJIcLcxo8BieuYs2DApnPZ7kUOEy8/s1600-h/boeing+dreamliner.jpg"><img id="BLOGGER_PHOTO_ID_5135323176566029986" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjG1p7cuhyphenhyphenjGd3Q7wXH-gSQ4Ys4SnCAnvegwjE9Sl-Nx7GKAIqf5Khxa-S4lBW_ZKAnbZyC6_9nxhMNomvFn9ahm0unOXpD0D5opxMD1zz7N3rzVG0wJIcLcxo8BieuYs2DApnPZ7kUOEy8/s320/boeing+dreamliner.jpg" border="0" /></a>percent fewer emissions, an anticipated 30 percent savings in maintenance costs and 10 percent better cash flow per seat mile than its peers. Going green in the aviation industry is front and center in this new century as the carbon impact of flying people and packages is being scrutinized. With continued innovation like the 787 Dreamliner, Boeing stands to be a social response leader in this new century.<br /><br />If you’re traveling by car, SUV or truck perhaps you are doing so this year in a new Toyota. This past year Toyota has been battling GM for the distinction of world’s largest automaker. I’m not sure that distinction matters anymore to most people. What matters is delivering quality products at a good price and with superior social value. And in those categories Toyota continues to shine. Since the release of the Prius in 1999 Toyota has deployed its</span> <a href="http://www.toyota.com/vehicles/minisite/hsd/?s_van=http://www.toyota.com/hybrid&ref=http://www.google.com/search%3fhl=en&q=Toyota+hybrid+vehicles"><span style="color:#3333ff;">hybrid-electric</span></a> <span style="color:#000000;">(Hybrid-Synergy Drive®) drivetrain on five vehicles in their product family: the Prius, the Highlander SUV, the Camry, the Lexus RX 400h SUV and the Lexus GS 400h luxury sedan. In less than a decade Toyota has sold more than 1 million of its hybrid-electric vehicles worldwide. That is still a small number when compared to the total number of vehicles sold per year in the US alone (16.55 million automobiles were sold in the US in 2006). However, Toyota’s brand, reputation and marketplace value have been soaring as they have demonstrated to consumers that mor<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiceyv21qeVleT4aNjmROWyFJtlOKpfDfaqb-YOe7kikeWqaaZCvMnwJhLL-oZpJuUzose-XqKRce60ahZUZJ_F-HwWrvA5qHh-jnIM5eDH8DDnhq98pw_Z9w2Suv3F1W8yt8Sejj5SufT8/s1600-h/gs-lexus-hybrid-001.bmp"><img id="BLOGGER_PHOTO_ID_5135323352659689138" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiceyv21qeVleT4aNjmROWyFJtlOKpfDfaqb-YOe7kikeWqaaZCvMnwJhLL-oZpJuUzose-XqKRce60ahZUZJ_F-HwWrvA5qHh-jnIM5eDH8DDnhq98pw_Z9w2Suv3F1W8yt8Sejj5SufT8/s320/gs-lexus-hybrid-001.bmp" border="0" /></a>e fuel-efficient, high quality and competitively priced vehicles can be manufactured. As the early adopters of Toyota products crash into early and great majority we believe you will continue to see strong sales and performance for Toyota in years to come.<br /><br />Being Thanksgiving we should talk about food, at least a little. And there are several companies that have made significant steps to green their transportation fleets, supply chain and how they procure energy in 2007. Some notable examples include Wal-Mart, Whole Foods, Starbucks, Trader Joe’s, Safeway, Green Mountain Coffee Roasters, Pepsi, and Tyson Foods. These retail food and beverage giants have each begun to transition their focus from traditional product and service companies that compete on price and quality to 21st century social response leaders that also compete on how they positively impact the product buying experience and brand loyalty of consumers.<br /><br />Take for example Pepsi who recently received the 2007 EPA Green Power Leadership Award for taking a leadership role in procuring green energy and developing green energy markets. In 2007 Pepsi announced they would procure 1 billion kilowatt-hours annually of green electricity from</span><span style="color:#3333ff;"> </span><a href="http://www.sterlingplanet.com/news/newsid16/"><span style="color:#3333ff;">Sterling Planet</span></a>. <span style="color:#000000;">Pepsi’s contract with Sterling Planet is the largest green energy procurement of its kind in the nation.<br /><br />I also give thanks to Tyson Foods who in 2006 announced the formation of</span> <a href="http://biodieselmagazine.com/article.jsp?article_id=1360"><span style="color:#3333ff;">Tyson Renewable Energy</span></a> <span style="color:#000000;">a division formed to commercialize the company’s supply of animal fats into biofuels. In 2007 Tyson announced partnerships with</span> <a href="http://www.news.com/2100-11392_3-6176812.html"><span style="color:#3333ff;">ConocoPhillips</span></a> <span style="color:#000000;">and</span> <a href="http://www.marketwatch.com/news/story/syntroleum-soars-tyson-foods-pact/story.aspx?guid=%7B398062D9-BFA6-4414-97A8-5F32AB4EBF8C%7D"><span style="color:#3333ff;">Syntroleum</span></a> <span style="color:#000000;">respectively. Seeking to produce more than 300 million gallons of biofuels from a waste byproduct of food processing is not only good business its smart and strategic business in a socially responsible world.<br /><br />And if you’re thinking about introducing some fish into your holiday diet, think about Wal-Mart who in 2006 set a goal to purchase its fish from sustainably harvested sources. Wal-Mart has partnered with the Marine Stewardship Council, Conservation International and the WWF on</span> <a href="http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=679"><span style="color:#3333ff;">sustainable fisheries</span></a> <span style="color:#000000;">and is seeking to: strengthen fisheries management practices, rebuild fish stocks, reduce the environmental impacts of fishing, and encourage support for broader marine ecosystem management and protection efforts. With more than $348 billion in global sales and $11.2 billion in net income in 2007, Wal-Mart is the largest retailer in the world. Approximately 60% of its stores are in the US. Love them or hate them Wal-Mart is using its strength as a large retailer to builder greener supply chains. From fisheries to clothing, computers, and other products, Wal-Mart is influencing consumer perception of and access to, greener products.<br /><br />This year has been marked in part by troubles in the financial credit/lending and housing markets. With new home builds at an all time low and the existing housing stock for sale rising, many continue to fear the worse for the housing market. One building products company out of Tennessee however is seeing promise where others see warning. LP Building Products has <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6_93kRtphk-v91tK-mHrS3X81107xiD_cS5pJwKXY9hnmOsWp62fa5nRA5GxLpNOpeBER1uJybf5LzkOMPHaWGqQpbmFKmJYmBk3Tv7zHSx0cJUZ5f_g6MXupXzZ6LM6KftjWBtabXjJw/s1600-h/fall20.jpg"><strong><span style="font-size:130%;"><img id="BLOGGER_PHOTO_ID_5135323460033871554" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6_93kRtphk-v91tK-mHrS3X81107xiD_cS5pJwKXY9hnmOsWp62fa5nRA5GxLpNOpeBER1uJybf5LzkOMPHaWGqQpbmFKmJYmBk3Tv7zHSx0cJUZ5f_g6MXupXzZ6LM6KftjWBtabXjJw/s320/fall20.jpg" border="0" /></span></strong></a>developed, and is now offering, products for homeowners to reduce their energy burden. The LP®</span> <a href="http://www.lpcorp.com/radiantbarrier/saveenergy/saveenergy.aspx"><span style="color:#3333ff;">TechShield® radiant barrier</span></a> <span style="color:#000000;">can decrease the costs to consumers for heating and cooling their homes. Constructed using a thin, durable sheet of aluminum overlay laminated to LP Oriented Strand Board (OSB), an innovative, affordable and environmentally smart wood-based structural panel made from wood strands and resins, LP TechShield® radiant barrier minimizes radiant heat gain in summer and minimizes radiant heat loss in winter.<br /><br />In a market already crunched, LP Corp. is offering consumers a solution to save money, save energy and enhance the value of their homes. We view LP Corp’s suite of energy and environmentally superior products <strong>as a winning combination particularly in a market where every little detail may make the difference on whether a bank lends money or a consumer makes a decision to buy.<br /></strong><br />Finally let me give thanks to the philanthropists and high net value individuals who in 2007 continued to be generous and consummate leaders as they’ve unselfishly shared their wealth, their time and their vision for a better world: Warren Buffet, President Bill Clinton, Bill and Melinda Gates, Thomas Golisano, and the hundreds of foundations and corporations that continue to help improve the world. These folks demonstrate the care, courage, compassion and commitment it takes to see social response capitalism to an entirely new level.<br /><br />There are so many more companies and individuals to give praise toward, but let me save them for another blog. Until then, <em><strong>Travel Safe, Eat Well, Be Merry and a Happy Thanksgiving and Holiday Season to All!<br /></strong></em><br /><br /><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><br /><div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0tag:blogger.com,1999:blog-9012302507271988727.post-70937531165132319482007-10-22T13:23:00.000-07:002008-12-11T00:47:22.107-08:00Green Growth in Global Markets: GE has a Formula for Success in Social Response Capitalism for Emerging Markets<span style="color:#000000;"><strong><span style="font-size:130%;">Born more than 115 years ago by innovation leader Thomas Edison, General Electric (GE) has grown to become a mega-corporation operating in more than 100 countries worldwide. GE employs more than 300,000 people and in 2006 GE’s sales topped $163.3 billion, of which 50% was outside of the US, </span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-QzQcmSaKWuDK9aoJ7RoZLOm4BhbzpqqhogSaluWE376idRWhczCimIWAHGEVilPezol5r5GPhyphenhyphenGcNGrkRyooM7tFGFCMsYUBsXAnTMhw2z_ClobBR6FRi3hMuQso5njceg77Sb9up4-B/s1600-h/GE5.jpg"><span style="font-size:130%;"><img id="BLOGGER_PHOTO_ID_5124266440300214530" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-QzQcmSaKWuDK9aoJ7RoZLOm4BhbzpqqhogSaluWE376idRWhczCimIWAHGEVilPezol5r5GPhyphenhyphenGcNGrkRyooM7tFGFCMsYUBsXAnTMhw2z_ClobBR6FRi3hMuQso5njceg77Sb9up4-B/s320/GE5.jpg" border="0" /></span></a><span style="font-size:130%;">a major shift for a company who “electrified” the US market and economy for so many years.</span></strong><span style="font-size:130%;"><br /></span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuTqsh69JtI03NFxygItuleXwRFry2iMSVeWvVSPlR4ymJ1s-7JSfPSXwR4dTyRe-i-I-0cbX_lHI8I5CA61Znhey8U0gq1MGkIYk6MtCEfQkGUBApy-49W3M7TqoADZ5QGeri-a6CN9dP/s1600-h/green+idea.jpg"></a><br />GE is an innovation leader and one that is committed to creating a better world. Even its prolific founder Edison once noted, “<em>I never perfected an invention that I did not think about in terms of the service it might give others</em>”, a powerful idea that now transcends the heart of GE’s corporate philosophy and global competitive strategy. In 2006 GE spent more than $3.6 billion on research and development at four strategically located innovation centers around the world: its global innovation headquarters in Niskayuna, NY and three other centers located in India, Germany and China.<br /><br />I recently met</span> <a href="http://www.ge.com/mea/ourCompany/habayeb.html"><span style="color:#3333ff;">Nabil Habayeb</span></a><span style="color:#000000;">, <em>GE President and CEO Middle East and Africa</em>, at Rochester Institute of Technology where he provided a presentation on “<em>The Role of Technology in Emerging Markets</em>”. Hearing Mr. Habayeb speak to students, faculty and researchers about how GE is developing and deploying technology to “solve world problems” was enlightening and full of promise, particularly in a week that has been charaterized by drought, rising oil prices and continued political instability in many regions of the world.<br /><br />Mr. Habayeb spoke about the need for a balanced approach to solving world challenges in energy, healthcare, water desalinization, and use of more sustainable materials. Mr. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEife-RbqAq0ajEOUSF4_q4pUBfLNsQFadUycwKo7933tKAnHd4noncIuZcKFqfMxZrEYiP7eEZVh_h2kNhi0klH1ZV9dk5Ofw9lSDyqUtSU4eJgA5tmpah3UHEgbMQLKqWc-6D7xr8sWrnZ/s1600-h/GE2.png"><img id="BLOGGER_PHOTO_ID_5124260594849724626" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEife-RbqAq0ajEOUSF4_q4pUBfLNsQFadUycwKo7933tKAnHd4noncIuZcKFqfMxZrEYiP7eEZVh_h2kNhi0klH1ZV9dk5Ofw9lSDyqUtSU4eJgA5tmpah3UHEgbMQLKqWc-6D7xr8sWrnZ/s320/GE2.png" border="0" /></a>Habayeb noted that there is a need to be “working toward equilibrium” and that GE, through its</span> <a href="http://ge.ecomagination.com/site/"><span style="color:#3333ff;">Ecomagination</span></a> <span style="color:#000000;">focus, is growing a global company that believes financial and environmental performance goes hand in hand. GE’s Ecomagination strategy is delivering ecologically sound products and services for water, transportation, lighting, residential and commercial buildings, energy generation and finance. Mr. Habayeb noted that GE’s balanced approach focuses on <strong>people</strong>, <strong>process</strong> and <strong>product</strong>. He stated that GE invests in its people through education and training, invests in better and more efficient processes and the net result he adds, is better products.<br /><br />Through <em>Ecomagination</em>, GE is providing the growing world a portfolio of affordable, reliable and environmentally responsible technologies that reduce emissions, save money and conserve natural resources. Mr. Habayeb referenced GE’s growing Ecomagination portfolio as a critical element of their financial and market future as it is “technology that differentiates you from your competitors”,…in an increasingly cost competitive world. Perhaps it is this focus on competitive differentiation (through people, process and product innovation) that has led GE to be the only company listed in the Dow Jones Industrial Index today that was also listed in the original index in 1896.<br /><br />Mr. Habayeb also spoke about emerging growth markets for Ecomagination products and services in the Middle East and Africa. He noted that GE’s Ecomagination focus is, in part, delivering products that provide the services people need in these regions, be them clean energy production, clean water, advanced materials, new healthcare options or supporting infrastructure that offers the people of the region the promise of a better future, both socially and economically. Mr. Habayeb mentioned that more than $1 trillion in new investment will be spent to upgrade, expand and develop the energy sector of the Middle East by 2030. With more than 50% of the world’s</span> <a href="http://www.eia.doe.gov/emeu/international/reserves.html"><span style="color:#3333ff;">oil reserves</span></a> <span style="color:#000000;">in the Middle East and Africa, GE’s infrastructure development and Ecomagination initiatives stand to offer the region a complement of technology opportunities for developing its energy sector more sustainably. Additionally, GE’s diversification and leadershipo in numerous market sectors (<em>e.g.,</em> <em>consumer electronics, power, water, healthcare, transportation, infrastructure, entertainment and tourism</em>) positions the firm as the “go-to” development partner for the Middle East and Africa region.<br /><br />For example, Mr. Habayeb referenced that in the emirate of Dubai, one of the seven emirates that comprise the United Arab Emirates (UAE), there <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqaa1MHB6fv6OvOCcxAORDNvZJC_ySnX8vSC6GRhFd3SM9mG98GRy34OcvocJMttQRrrTILFUjT3K68ISIjxu1EZ_y8Ab8nmB8MArbiYVKeKohvNw9bCtYD9se98tuRWYJybW0-sGPs4mm/s1600-h/GE4.jpg"><img id="BLOGGER_PHOTO_ID_5124261080181029106" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqaa1MHB6fv6OvOCcxAORDNvZJC_ySnX8vSC6GRhFd3SM9mG98GRy34OcvocJMttQRrrTILFUjT3K68ISIjxu1EZ_y8Ab8nmB8MArbiYVKeKohvNw9bCtYD9se98tuRWYJybW0-sGPs4mm/s320/GE4.jpg" border="0" /></a>is a growing desire to utilize best available technologies that offer social response solutions to the regions’ energy, healthcare, education and living needs. He says many Middle Eastern nations are carefully watching Dubai’s development (and subsequently GE’s role as a partner) as they look to it as a potential model for their own growth.<br /><br />At the heart of the GE equation for addressing social response services in this new century is its people. GE employees volunteer in excess of one million hours per year in their communities. GE’s corporate responsibility and business actions are based on a set of values that relate people to excellence and high standards. For example, GE seeks out employees that are passionate/curious, resourceful/accountable, team oriented/committed, and open/energized. These values shape the foundation of integrity and are the credo by which employees of GE work and live by.<br /><br />It is clear that their values for integrity and excellence filter from its leadership throughout the organization. Mr. Habayeb referenced GE Chairman and CEO Jeff Immelt who says, “<em>In order to be a great company, you need to be a good company</em></span><span style="color:#000000;"><em>.</em>”<br /><br />And GE is a great company. By serving emerging markets in the Middle East and Africa, GE is positioned for strong growth as they seek to deploy state-of-the-art technology to improve the social and economic aspects of life while building infrastructure in those regions. We look forward to watching how GE continues to differentiate itself from its competitors using the social response product development strategy outlined in Bruce Piasecki’s book</span> <a href="http://www.worldincbook.com/"><span style="color:#3333ff;">World Inc.</span></a><br /><br /><span style="color:#000000;"><span style="font-size:130%;"><strong>With a simple formula for sustainable growth that reads <span style="color:#3333ff;">Better People + Better Process = Better Products</span>, a focus on emerging markets and servicing global needs, a commitment to people and process, and a strong leadership (like Mr. Habayeb) that is rooted in innovation and integrity, we look forward to seeing GE on the Dow Jones Industrial Average for another century.</strong><br /></span><br />Let us know your thoughts on GE’s Ecomagination and Emerging Markets strategies.<br /></span><br /><br /><div><div><div><div><p><span style="color:#000000;"><em><span style="font-size:85%;">Mark C. Coleman<br />Senior Associate & World Inc. Case Leader, AHC Group, Inc.<br /></span></em></span><a href="mailto:Mark@ahcgroup.com"><span style="font-size:85%;color:#3333ff;"><em>Mark@ahcgroup.com</em></span></a><em><br /></em></p></div></div></div></div>Mark C. Colemanhttp://www.blogger.com/profile/16526542916121078212noreply@blogger.com0